465BTemporary non-residents

1

This section applies if an individual is temporarily non-resident.

2

The individual is liable for tax under this Chapter for the year of return in respect of any gain that meets the conditions in subsection (3).

3

The conditions are—

a

the gain arose in the temporary period of non-residence,

b

it arose from a policy issued in respect of an insurance made, or from a contract made, before the start of that period,

c

the chargeable event giving rise to it was neither a death nor a chargeable event treated as occurring under section 525(2),

d

no-one is liable under section 466 or 467 in respect of the gain,

e

no-one is liable by virtue of section 468 for either the year of return or an earlier tax year as a result of the gain, and

f

the individual would have been liable under section 465 in respect of the gain, applying the assumptions in subsection (4).

4

The assumptions are—

a

the individual was UK resident for the tax year in which the gain arose, and

b

that tax year was not a split year as respects the individual.

5

If the individual is liable by virtue of subsection (2) in respect of a gain—

a

the amount of the gain in respect of which he or she is liable is the amount on which tax would have been charged under this Chapter applying the assumptions in subsection (4), but

b

in determining that amount, section 528 must be applied ignoring those assumptions.

6

That amount is treated as income of the individual for the year of return.

7

If the gain arises from a policy or contract treated under section 473A as a single policy or contract, the date, for the purposes of subsection (3)(b), on which the insurance or contract is made is the date on which the first insurance is made in respect of which the connected policies were issued or, as the case may be, the date on which the first of the connected contracts is made.

8

This section does not apply to a gain if—

a

in relation to the policy or contract from which the gain arises, a terminal event occurs in the temporary period of non-residence or in the period of return,

b

the chargeable event giving rise to the gain occurred before that terminal event,

c

the chargeable event giving rise to the gain is one that is treated as occurring under section 509(1) as a result of the application of section 498(1)(a),

d

section 498(1)(a) applies other than by virtue of section 500, and

e

a person (whether or not the individual) is liable for tax under this Chapter (including by virtue of this section) in respect of any gain resulting from the terminal event.

9

Nothing in any double taxation relief arrangements is to be read as preventing the individual from being liable for tax under this Chapter in respect of any gain in respect of which the individual is liable for tax by virtue of subsection (2) (or as preventing a charge to tax on that gain from arising under this Chapter).

10

Part 4 of Schedule 45 to FA 2013 (statutory residence test: anti-avoidance) explains—

a

when an individual is to be regarded as “temporarily non-resident”, and

b

what “the temporary period of non-residence” and “the period of return” mean.

11

In this section—

terminal event” means an event mentioned in section 499(3);

“year of return” means the tax year that consists of or includes the period of return.