(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 the UK and will be absent from the UK for a period of five years or less.
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 under the temporary non-resident rules because the property was acquired during Eider’s period of absence from the UK.
(3). For the purposes of UK income tax and CGT Sparrow will be deemed domiciled in the UK in a tax year if he was UK resident for 15 of the previous 20 tax years. Accordingly he will be deemed domiciled in the UK for five years following his departure. This will, of course, only be relevant if he becomes UK resident during that five year period.