The new CGT rules and how they apply to non residents and non doms

As we all know the maximum CGT rate has increased substantially for disposals after 22 June 2010. However, the recent Finance Bill has produced some useful clarifications on the transitional rules that will apply, in particular when disposals are treated as arising before or after 23 June 2010. This is clearly crucial in assessing whether gains will be charged at 18% or 28%. Non residents Non-residents are exempt from CGT, however in many cases they need to remain overseas for a period of at least 5 complete tax years to avoid the gain being charged in the tax year of their return. If they don't satisfy the 5 year non residence requirement, any gains realised during the period of non-residence are treated as arising in the year they again become resident. The Finance Bill states that where the resumption of residence is during 2010-11, all gains are treated as arising before 23 June 2010, and are therefore chargeable at the single rate of 18 per cent. Non-doms General rule Many non-doms taxed on the remittance basis have been wondering what is the position where a gain was made on a disposal before Budget Day but was not remitted until after Budget Day. The new Finance Bill states that for anyone taxed on the remittance basis for 2010-11, gains remitted to the UK are treated as arising at the time they are remitted (so that the time of remittance determines whether the gains are treated as arising before 23 June 2010 or on or after that date). We've got more on these and other changes (including the changes for mixed fund remittances) in this article:The new CGT rules for non residents and non doms