»Ê¹ÚÌåÓýapp

»Ê¹ÚÌåÓýappre are transitional rules in Paragraph 84 Schedule 7 FA 2008 that ensure that capital gains for years prior to 2008-09 continue to be taxable when remitted by applying TCGA92/s12, as amended by Finance Act 2008, as if the individual had made a claim under ITA07/s809B for the remittance basis of taxation to apply for the relevant year.

However the temporary non-residents rules in TCGA92/s10A do not apply to any part of the gain remitted to the UK in tax year 2007-08 or any earlier year.

Example

Mr A is non-UK domiciled and elects for the remittance basis for 2008-09 and later years.

He was resident in the UK for 4 of the previous 7 years of assessment before leaving the UK in 2006-07.

He realises a large gain in 2007-08 on assets acquired a number of years ago.

He returns to the UK in 2008-09.

»Ê¹ÚÌåÓýapp gain arises in an intervening year (2007-08).

Mr A remitted half of the gain in 2007-08 and the remainder in 2009-10.

S10A does not apply to the part of the gain remitted in 2007-08.

S10A applies to the remainder of the gain for 2008-09. This remaining part of the gain is chargeable when remitted. In this example this would be 2009-10.

If a gain arises in an intervening year and that intervening year is 2008-09 or later, where any part of that gain is remitted before the year of the return, that part of the gain chargeable for the year of return. »Ê¹ÚÌåÓýapp normal remittance basis rules would apply to any remaining part of the gain.