An exit tax is a measure many countries apply when a taxpayer moves their residence abroad: unrealised gains (built-in value) on substantial shareholdings are taxed as if the shares had been sold at market value, even though no actual sale takes place. Germany taxes such gains immediately on departure under section 6 of its Foreign Tax Act, the Netherlands issues a preserved assessment (conserverende aanslag) and France applies its exit tax under article 167 bis of the CGI.
The United Kingdom takes a different approach: there is no general exit tax on leaving the UK. The relevant mechanism is the Temporary Non-Residence rule (TCGA 1992, s. 10A): if you leave the UK and resume residence within five full tax years, capital gains realised during the absence on assets you already held before departure become chargeable in the year of return. In addition, UK land and property always remains within the scope of capital gains tax for non-residents, regardless of how long you stay away. Leaving the UK therefore turns on the Statutory Residence Test, the five-year horizon and the timing of disposals rather than on a charge at the moment of departure.
For entrepreneurs moving to Malta this means planning the sequence carefully: disposals of pre-departure assets are generally only safe from the five-year clawback once non-residence has lasted five full tax years, split-year treatment needs to be coordinated with the moving date, and the position of any UK company (central management and control) must be addressed. Planning should start 12 to 24 months before the intended move in order to use timing and structuring options properly.
