An individual returning to the UK after a period of non-residence faces two distinct statutory clocks at the same moment. The TCGA 1992 section 10A temporary-non-residence rule is the 5-year recapture clock for gains realised during a short absence. The ITTOIA 2005 section 845B(1)(c) FIG eligibility test is the 10-year prior-non-residence clock that opens the four-year exemption window for genuinely-new residents. The two clocks have different thresholds and different statutory tax bases; they interact in three distinct patterns depending on the length of the absence.

This page is the closing page of the Wave 8 Bucket A cluster on FIG, non-dom IHT, and leaving-UK depth. It ties together the FIG cluster (eligibility, election mechanics, year-5 cliff) with the IHT cluster (s.6A LTR test, s.48ZA EPT pivot, s.18 spouse exemption) by walking the return-side analysis that completes the cross-border landlord's tax planning calendar. For the FIG-side eligibility analysis, see the FIG eligibility pillar; for the IHT-side, see the IHTA s.6A LTR test pillar.

TCGA 1992 section 10A: the 5-year temporary-non-residence rule

Section 10A targets temporary non-residents. The rule prevents an individual from escaping UK CGT on disposals of assets they owned at departure by leaving the UK for a short period, realising the gain offshore (when CGT is not in scope), and returning. Without s.10A, the planning route would be to depart for one tax year, sell the appreciated assets, and return; the gain would escape UK CGT entirely. Section 10A closes the route by deeming the gain to arise in the year of return where the absence is 5 years or less.

The conditions for s.10A to engage are four cumulative tests. First, the residence-history pre-condition: the individual must have been UK-resident in 4 or more of the 7 tax years before departure. This narrows the rule to genuinely UK-rooted individuals; a casual visitor with limited prior UK residence does not trigger s.10A on departure. Second, the non-residence-period test: the individual's period of non-UK residence must be 5 years or less. An absence of 6+ consecutive non-UK tax years takes the individual outside s.10A. Third, the disposal-during-non-residence test: the gain must have been realised on an asset that the individual owned at departure and disposed of during the non-residence period. Fourth, the would-have-been-chargeable test: the gain would have been chargeable if the disposal had been by a UK resident.

Where all four conditions are satisfied, the gain is treated as arising in the year of return and is chargeable to UK CGT at that year's rates. For UK residential property the rate is 18% (basic-rate band) or 24% (higher-rate); for non-residential property the rate is 18% / 24% on the post-30-October-2024 basis. The recapture lands in the year of return as additional chargeable income for self-assessment purposes.

The rule does not apply to assets ACQUIRED AND DISPOSED during the non-residence period (no UK base-cost issue exists for assets that were never owned by the individual as a UK resident). It targets the legacy assets at departure that have an underlying UK base cost. The income-tax parallel at ITA 2007 s.812 operates on dividend income, pension lump sums, and certain other income types received during a temporary-non-residence period of 5 years or less.

ITTOIA 2005 section 845B(1)(c): the 10-year FIG eligibility test

Section 845B(1)(c) is one of four cumulative conditions in the FIG eligibility test (the others are UK-residence in the qualifying year; not-disqualified per s.845B(4); and at least 10 years old at commencement). Condition (c) requires the individual to have been not UK-resident in any of the 10 tax years preceding the qualifying year. The 10-year requirement is binary: 10 consecutive prior non-UK years grants eligibility; 9 or fewer fails outright with no partial-eligibility taper.

For a returning UK national, the FIG eligibility analysis runs on the 10 tax years preceding the planned return year. A return in 2026-27 needs 2016-17 to 2025-26 to all be non-UK-resident. A return in 2030-31 needs 2020-21 to 2029-30 to all be non-UK-resident. The window slides forward each year of delay; an individual considering when to return can use the slide to determine the earliest year that the FIG eligibility test will be satisfied.

The FIG four-year window per s.845B(2) opens in the qualifying year (the year of return where condition (c) is satisfied) and runs through the next three subsequent tax years. So a successful FIG-eligible return in 2026-27 gives FIG access for 2026-27, 2027-28, 2028-29, and 2029-30. The relief is per-year claim under s.845A; the individual can claim FIG in each year where the breakeven analysis (per the FIG election-mechanics page) supports it.

The three-pattern interaction framework

The interaction of s.10A and s.845B(1)(c) at return produces three distinct patterns based on the length of the absence:

  1. Pattern 1: short absence (1 to 5 tax years). Section 10A engages on any gains realised during the absence; the recapture is at the year-of-return CGT rate. FIG is not available (10-year threshold not reached). The short-absence returnee faces s.10A recapture plus arising-basis taxation on post-return foreign income, with no FIG relief. This is the worst-of-both-worlds outcome.
  2. Pattern 2: medium absence (6 to 9 tax years). Section 10A does not engage (the absence exceeds 5 years); gains realised during the non-residence period are permanently outside UK CGT scope. But FIG is still not available (10-year threshold not reached). The medium-absence returnee gets the s.10A relief on past gains but no FIG benefit on post-return foreign income.
  3. Pattern 3: long absence (10+ tax years). Section 10A does not engage AND FIG eligibility is met. The four-year FIG window opens in the year of return; foreign income and gains arising 2025-26 onwards are FIG-exempt for the window. The long-absence returnee gets both reliefs: s.10A protection on past gains plus FIG benefit on post-return foreign income.

The transition between Patterns 2 and 3 at the 10-year mark is the highest-value timing decision in landlord-emigrant planning. For individuals with substantial post-return offshore income streams (ongoing foreign dividend, foreign rental, foreign interest), delaying return from year 9 to year 10 adds £40,000 to £80,000 per year of foreign-income tax saving across the four-year FIG window (depending on marginal rates).

Worked scenario one: short-absence work-secondment returnee

Mr Singh. UK-resident throughout 2014-15 to 2019-20 (so he satisfies the 4-of-7 pre-condition at departure). Departed UK 6 April 2020 for a Singapore work secondment. Non-UK resident 2020-21 to 2023-24 (4 consecutive non-UK tax years). During the non-residence period he realised £180,000 of gains on offshore investment shares (held at departure). Returns to UK 6 April 2024; 2024-25 is the year of return.

Section 10A analysis. Residence-history pre-condition: yes (4+ of 7 prior UK-resident). Non-residence period 5 years or less: yes (4 years). Disposals during non-residence: yes. Asset held at departure: yes (offshore shares were held). Would have been chargeable: yes (gain on non-UK shares is normally CGT-chargeable for UK residents). All four conditions satisfied; the £180,000 gain is deemed to arise in 2024-25 and is chargeable at 18% / 24% rate (depending on band positioning).

Assuming the gain falls in the higher-rate band, the CGT charge is £180,000 × 24% = £43,200 in 2024-25. Less the £3,000 CGT annual exempt amount (if no FIG claim), net £42,480 of UK CGT.

FIG eligibility for 2024-25. Section 845B(1)(c): the 10 tax years preceding 2024-25 are 2014-15 to 2023-24; of those, 2014-15 to 2019-20 are UK-resident (6 years), so condition (c) fails. FIG is not available. Mr Singh's 2024-25 onwards foreign income is on arising basis.

Total outcome: £42,480 of CGT recapture in year of return, plus arising-basis taxation on ongoing foreign income.

Worked scenario two: medium-absence returnee

Mrs Chen. UK-resident throughout 2015-16 to 2018-19 (4 of 7 prior UK-resident years before 2019-20 departure, satisfies the s.10A pre-condition). Departed UK 6 April 2019. Non-UK resident 2019-20 to 2025-26 (7 consecutive non-UK tax years). During the non-residence period she realised £180,000 of gains on offshore investments (held at departure). Returns to UK 6 April 2026; 2026-27 is the year of return.

Section 10A analysis. Residence-history pre-condition: yes. Non-residence period 5 years or less: NO (7 years exceeds the threshold). Section 10A does not engage. The £180,000 gain was realised while non-UK-resident and is permanently outside UK CGT scope.

FIG eligibility for 2026-27. Section 845B(1)(c): the 10 tax years preceding 2026-27 are 2016-17 to 2025-26; of those, 2016-17 to 2018-19 are UK-resident (3 years), so condition (c) fails. FIG is not available.

Total outcome: no s.10A recapture, but no FIG benefit either. The £180,000 gain is permanently outside UK CGT scope. Mrs Chen's 2026-27 onwards foreign income is on arising basis.

The Chen case is structurally cheaper than Singh's by £42,480 of CGT recapture, even though both faced the same gains and the same post-return foreign-income arising-basis taxation. The 3-year delay in return (from year 4 to year 7 of absence) saved the s.10A recapture entirely.

Worked scenario three: long-absence FIG-eligible returnee

Mr Olusegun. UK-resident pre-2013-14. Departed UK 31 March 2014 (last day of 2013-14). Non-UK resident 2014-15 to 2025-26 (12 consecutive non-UK tax years). During the non-residence period (specifically 2018-19) he realised £180,000 of gains on offshore investments. Returns to UK 6 April 2026; 2026-27 is the year of return.

Section 10A analysis. Residence-history pre-condition: yes (UK-resident pre-2014). Non-residence period 5 years or less: NO (12 years far exceeds threshold). Section 10A does not engage. The £180,000 gain is permanently outside UK CGT scope.

FIG eligibility for 2026-27. Section 845B(1)(c): the 10 tax years preceding 2026-27 are 2016-17 to 2025-26, all non-UK-resident. Condition (c) satisfied. Other conditions (a UK-resident in 2026-27; (b) not disqualified; (d) at least 10 years old) also satisfied. FIG window opens 2026-27 to 2029-30.

Assuming Mr Olusegun's post-return foreign income is £45,000 per year (consistent with the FIG eligibility-page worked example), the FIG saving per year at 40% marginal is £18,000 minus the £5,800 allowance forfeiture cost = £12,200 net positive per year for 4 years = £48,800 of additional saving from FIG compared to the medium-absence Chen case.

Total outcome: no s.10A recapture, plus £48,800 of FIG saving across the four-year window. The long-absence Olusegun case is structurally £91,280 cheaper than the short-absence Singh case (£42,480 recapture saved + £48,800 FIG benefit) on otherwise comparable asset and income profiles.

The s.10A interaction with NRCGT for UK land

Section 10A is targeted primarily at non-UK situs asset gains and pre-2015 UK-resident-base-cost gains on UK land. UK land disposals by non-residents are already in UK CGT scope under the NRCGT regime (TCGA 1992 s.1A and Schedules 1A, 1B, 4AA, rewritten by Finance Act 2019 and replacing the earlier ss.14B-14H structure from Finance Act 2015). NRCGT taxes UK land disposals by non-residents at 18% to 24% with the 5 April 2015 rebasing default for residential property or the 5 April 2019 rebasing default for non-residential property.

For a returning landlord who sold a UK BTL while non-resident, the disposal was already taxed under NRCGT at the time. Section 10A does not add an additional layer of UK CGT on the same disposal. The s.10A rule operates as a backstop for gains that would otherwise have escaped UK CGT during non-residence: typically non-UK situs asset gains (which are outside NRCGT) and pre-2015 UK land gains with historic-cost bases (which can have a residual untaxed slice that NRCGT's 2015 rebasing did not capture).

The ITA 2007 s.812 income parallel

Section 812 of ITA 2007 is the income-tax equivalent of TCGA s.10A. The rule targets dividend income, pension lump sums, and certain other income types received during a non-residence period of 5 years or less by an individual who satisfies the same 4-of-7 residence-history pre-condition. Where the conditions are met, the income is deemed to arise in the year of return and is chargeable to UK income tax at the year-of-return marginal rates.

The s.812 interaction with FIG follows the same three-pattern structure as the s.10A side. Short-absence returnees (1 to 5 years) face s.812 recapture plus arising-basis on post-return income. Medium-absence returnees (6 to 9 years) escape s.812 but get no FIG benefit. Long-absence returnees (10+ years) escape s.812 and qualify for FIG.

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The IHT LTR test runs independently

The IHTA 1984 s.6A long-term-resident test runs on a 10-of-20 rolling window and is separate from both s.10A and s.845B. For a returning UK national, the s.6A test depends on the prior UK-residence history within the 20-year window preceding the current tax year. The longer the prior absence, the more UK-resident years have rolled out of the 20-year window and the longer it takes for the returning individual to re-engage LTR status.

For Mr Olusegun's profile (12 years away; long-absence FIG-eligible return), the s.6A test on the year of return (2026-27) looks at the 20 tax years 2006-07 to 2025-26. Of those, 2006-07 to 2013-14 are UK-resident (8 years); 2014-15 to 2025-26 are non-UK-resident (12 years). UK-resident-year count: 8, which is below the 10-of-20 threshold. Mr Olusegun is NOT LTR in 2026-27 and his worldwide non-UK assets remain outside UK IHT scope for further years until enough UK-resident years accumulate to push the count back to 10.

The LTR re-engagement for a long-absence returnee depends on continued UK residence post-return: each year of continuous UK residence adds one to the count and rolls one historic non-UK year out (the year falling off the back of the 20-year window). The LTR threshold may take an additional 2 to 5 tax years post-return to engage; sessions advising should map the LTR clock year by year.

Practical decision framework for the returning UK national

The year-of-return decision is the structural variable. For an individual with substantial offshore gains realised during absence AND ongoing offshore income streams, the choice is between three zones:

  • Years 1 to 5 (Zone 1): s.10A recapture on past gains; no FIG. Cost: full recapture plus arising-basis on post-return foreign income.
  • Years 6 to 9 (Zone 2): no s.10A; no FIG. Cost: arising-basis on post-return foreign income.
  • Year 10+ (Zone 3): no s.10A; FIG available for 4 years. Cost: net of FIG saving on post-return foreign income.

The Zone 2 to Zone 3 transition at year 10 is typically worth £30,000 to £100,000+ in additional tax saving across the 4-year FIG window for individuals with substantial offshore income. The Zone 1 to Zone 2 transition at year 6 is typically worth even more for individuals with substantial gains realised during absence (the s.10A recapture saving can be £100,000+ on a £400,000 gain).

The decision should be made before any UK-residence-triggering arrangement is taken: signing a UK employment contract, acquiring or occupying a UK home, spending UK days that would breach SRT thresholds. Once the year of return is locked under SRT, the s.10A and s.845B(1)(c) outcomes are determined.

The pre-cliff trust settlement and gift discipline for returnees

For long-absence returnees who qualify for FIG, the same pre-cliff levers identified in the FIG year-5-cliff page apply: gifting non-UK situs assets while still non-LTR; settling non-UK assets into offshore trust under IHTA 1984 s.48ZA(2); accelerating foreign income receipts into the FIG-window years. The timing logic at return is slightly different from the pre-FIG-window logic for native new arrivals. The returnee is using FIG for years 1 to 4 of UK residence (the four-year FIG window from the qualifying year of return); they will not become LTR for IHT purposes until later years (typically year 10 of UK residence under the s.6A 10-of-20 test, but possibly later for individuals with broken-year prior UK residence).

The pre-cliff levers should be exercised within the FIG window where the foreign-income or CGT exemption gives the cleanest cost profile. Non-UK situs gifts made in year 1 to 4 of UK residence are outside UK IHT under s.6 (the donor is non-LTR) and CGT on the gift is FIG-exempt if the gain is foreign-source. Trust settlements made while the settlor is non-LTR lock in s.48ZA(2) excluded-property protection for that addition. Income acceleration into years 1 to 4 captures the FIG saving on the larger flows.

HMRC enquiry pattern on return-side timing

HMRC's enquiry approach to return-side cases focuses on three areas. First, the SRT residence-history evidence: the 10-year prior-non-residence test for FIG and the 5-year vs 6+ year question for s.10A both depend on the SRT outcome for each tax year of the relevant window. Day-count records, country-tie evidence, accommodation tie evidence should be retained for each of the relevant years. For long-absence cases, the documentation burden runs over a 10-year period; record retention should match.

Second, the year-of-departure characterisation. The s.10A residence-history pre-condition (4 of 7 prior UK-resident years before departure) and the FIG eligibility test both depend on a clear year of departure under SRT. Split-year departures need particularly careful documentation: the year of departure under Case 1 to 3 split-year treatment still resolves to UK-resident overall for the year, which matters for both the s.10A pre-condition and the s.845B(1)(c) test.

Third, the FIG eligibility claim. Where the individual claims FIG in the year of return, HMRC will verify the s.845B(1) four-conditions analysis. The 10-year prior-non-residence test is the most-checked condition; gaps in the residence record (even one tax year of UK residence within the 10-year window) fail the test entirely. Sessions advising should produce a year-by-year residence record before the FIG claim is filed, with supporting evidence for each year's SRT classification.

What this page does not cover

This page is the return-side closer to the Wave 8 Bucket A cluster. It does not cover: the SRT cascade in detail (the SRT pillar covers); the FIG eligibility test in operational depth (the FIG eligibility pillar covers); the FIG election mechanics and breakeven (the election-mechanics page covers); the FIG year-5 cliff and pre-cliff planning (the cliff page covers); the IHT LTR test (the s.6A pillar covers); the TRF for legacy non-doms (the TRF pillar and qualifying-capital companion cover); the Sch 11 CGT rebasing (the rebasing page covers); the NRCGT regime for UK land disposals by non-residents (covered separately).

Statutory and HMRC sources cited above: TCGA 1992 section 10A; ITTOIA 2005 section 845B; ITA 2007 section 812 (income parallel); FA 2013 Schedule 45 (Statutory Residence Test); TCGA 1992 section 1A (NRCGT for UK land); IHTA 1984 section 6A (LTR test); HMRC CG26540 (Temporary non-residents).