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TonyTax, Tax Consultant
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This is a question for a verified uk tax professional only.

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This is a question for a verified uk tax professional only.Sequence of events:Jan 31st 2014 I left the UK to find a job in Taiwan.
1st Sept 2016 Moved to Australia
Mid May 2019 sold shares with a capital gains of about £35000
June 2020 - over a month later - I brought the shares back again
November 2019 Employer went into liquidation
Jan 2020 I'm still on holiday in Australia, I have a job offer to return to the UK.I have not been to the UK **at all** since I left in 2014.I crystallized some of my capital gains because I had been out of the UK for over 5 years:2 questions:If I return to the UK before the end of this tax year - April the 5th 2020 - do I have to pay CGT on the shares that I sold back in May 2019?I have accrued further capital gains. If I crystallize these before leaving Australia and return to the UK before the end of the tax year do I have to pay CGT on those gains too?If you have any references from HMRC etc...to support your answer that would be great!Many thanks in advance, Will.*****************************************************************************************
My only reference:https://www.gov.uk/capital-gains-tax/what-you-pay-it-on specifically:"If you’re abroadYou have to pay tax on gains you make on property and land in the UK even if you’re non-resident for tax purposes. You do not pay Capital Gains Tax on other UK assets, for example shares in UK companies, unless you return to the UK within 5 years of leaving."

Hi. My name is*****'m looking at your question now and will post my answer or ask for more information here in a short while.

Were the shares sold in May 2019 owned by you before you left the UK in January 2014? If so, were they connected to a business in the UK that you were involved with or just an investment? Were you UK resident in all or part of 4 of the 7 tax years before the tax year you left the UK?

Customer: replied 6 months ago.
Were the shares sold in May 2019 owned by you before you left the UK in January 2014? yes
If so, were they connected to a business in the UK that you were involved with or just an investment? just an investment
Were you UK resident in all or part of 4 of the 7 tax years before the tax year you left the UK? yes

Thanks.

Leave this with me while I draft my answer.

Since the shares acquired before you left the UK were just an arms length investment and not connected to a UK business you were involved in and assuming that they were not covered by any of the three categories under Example 2 in HS278 here then you will not have to pay UK CGT on the gain as if it had occurred in the 2019/20 tax year if you do return to the UK before 5 April 2020 as you will have been non-UK resident for more than 5 years which period started on 1 February 2014. By 31 January 2020 you will have completed 6 years as a non-UK resident. The rule up to 5 April 2013 was five complete tax years. Read under the heading "What’s meant by temporary non-residence" in HS278 here.

If you return to the UK by 5 April 2020, that tax year will be treated as a split year for tax purposes, one covering the period 6 April 2019 to the day you leave Australia and one covering the the day of your return to the UK to 5 April 2020. Capital gains in the period of non-UK residence are not normally taxable in the tax year of return even though you are technically resident in the UK for that year.

The fact that you bought the shares back over 30 days later is not relevant but any gain you make after your return to the UK may be subject to CGT in the UK.

I hope this helps but let me know if you have any further questions.

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