Section 1N: Section 1M(1): assets acquired in temporary period of non-residence

Taxation of Chargeable Gains Act 1992 · 1992 c. 12View on legislation.gov.uk

Part 1: Capital gains tax and corporation tax on chargeable gains — Chapter 1: Capital gains tax

An asset is excluded from section 1M(1) if—

it was acquired by the individual in the temporary period of non-residence,
the acquisition was otherwise than by means of a disqualifying no gain/no loss disposal,
there is no reduction in the consideration for the acquisition under section 23(4)(b) or (5)(b), 152(1)(b), 153(1)(b), 162(3)(b) or 247(2)(b) or (3)(b) by reference to a UK resident disposal, and
the asset is not an interest created by or arising under a settlement.

This exclusion does not apply in the case of an asset ("the new asset") if—

on a disposal of the new asset a gain or loss is treated as a result of 116(10) or (11), 134 or 154(2) or (4) as accruing (ignoring section 1M),
the gain or loss is calculated by reference to another asset ("the old asset"), and
the new asset is one that meets the conditions for exclusion but the old asset does not.

For the purposes of this section "a UK resident disposal" means a disposal by a person ("P") of an asset which was acquired by P at a time when—

P was resident in the United Kingdom, and
P was not Treaty non-resident.

For the purposes of this section "a disqualifying no gain/no loss disposal" means a UK resident disposal to which section 58, 73 or 258(4) applies.

About this text

This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.