Non-resident CGT (NRCGT) meaning

Giving an asset away counts as a disposal for capital gains tax (CGT). This may, therefore, crystallise a CGT charge on any gain that is treated as having arisen. The general rule For CGT purposes, a gift is treated as a disposal for consideration equal to the asset’s market value. The recipient’s (donee or transferee’s) base cost is that market value. For details on the disposal value, see: Introductory guide to CGT. The same approach generally applies to any bargain not made at arm’s length, which can include a sale for less than full value, though not in every instance. Any gain arising on a gift or a sale at an undervalue is chargeable in the usual way, and losses are allowable in the normal manner. Gifts between spouses and civil partners A transfer to a spouse or civil partner will not give rise to any gain or loss, provided the couple are living together. The transferor is treated as making the disposal for an amount...

This Practice Note sets out key tax pitfalls and planning opportunities for individuals departing the UK. It is a brief overview, and bespoke advice may be necessary for particular clients, especially where circumstances are complex. —key points to consider A tax-efficient exit from the UK demands thorough planning. Points to review include: the statutory residence test (SRT) temporary non-residence disposal of UK residential property domicile status double taxation compliance obligations UK pensions and investments residence of trusts and companies where taxpayer is a trustee/director/officer continuing tax obligations post-departure These matters can be depicted in the following diagram: Statutory residence test For anyone aiming to be non-UK resident after 5 April 2013, the statutory residence test (SRT) determines how many days may be spent in the UK without being treated as UK-resident. For information on the SRT, see the following Practice Notes: Residence after 5 April 2013 The statutory...

Private Client England & Wales glossary A Abatement When, after settling the deceased’s funeral costs, debts and liabilities, the remaining estate cannot satisfy all legacies in full, the gifts are reduced accordingly, unless the Will shows a different intention. In a solvent estate, the order for reduction appears in Part II of Schedule 1 to the Administration of Estates Act 1925. Refer to Practice Note: Payment of legacies. Accruals basis Where income is taxed on an accruals basis, it is attributed to a given tax year by reference to the number of days within that year during which the activity giving rise to the liability accrued. See Practice Note: What is the basis of income tax?. Accumulation and maintenance (A&M) trust A form of non‑interest in possession trust designed to benefit children and young people up to 25, which received favourable inheritance tax treatment between 1975 and 2006. See Practice Note: Accumulation and maintenance trusts—IHT [Archived]. Accredited Legal Representative (ALR) ...