(1). The circumstances in which an individual may be regarded as a temporary non-resident for the purposes of CGT are:
(2). Eider will not be UK resident when she sells the two properties. However, she will be a temporary non-resident, as she has been UK resident for at least four of the seven tax years prior to the year of leaving from the UK and will be absent from the UK for a period of less than five years.
Any gain on the sale of property 1 will be subject to UK CGT in the tax year of her return to the UK as the property was acquired before Eider left the UK.
Any gain on the sale of property 2 will not be subject to UK CGT as the property was acquired during Eider’s period of absence from the UK.
(3). For the purposes of UK IHT, Sparrow will be deemed domiciled in the UK for three years following his emigration to New Zealand. Accordingly, if he were to die prior to 30 June 2018 he would be subject to UK IHT on his worldwide assets. If he were to die after 30 June 2018 he will only be subject to UK IHT on his assets situated in the UK.