United Kingdom
Non-Resident Capital Gains Tax on UK Property: Rules, Rates and Reporting
Non-residents who sell UK residential property pay capital gains tax at the same rates as UK residents: 18% within the basic-rate band and 24% above it. The £3,000 annual exempt amount is available. Every disposal must be reported to HM Revenue and Customs within 60 days of completion, whether or not any tax is due. Private Residence Relief is generally not available if the seller is not UK resident.
| Basic rate (residential) | 18% |
| Higher rate (residential) | 24% |
| Annual exempt amount | £3,000 per person |
| Reporting deadline | 60 days (mandatory for all non-residents) |
| NRCGT applies since | April 2015 (residential) |
| Tax on £80,000 gain (no UK income) | £16,218 |
What is non-resident capital gains tax?
Non-resident capital gains tax (NRCGT) is the charge on gains made by non-UK residents when they sell UK property. It has applied to residential property since April 2015 and was extended to all UK property and land (including commercial) from April 2019.
Before April 2015, non-residents could sell UK property without any UK capital gains tax. That exemption no longer exists. Anyone who is not UK resident and disposes of UK property or land is within the scope of NRCGT, regardless of where they live or their nationality.
The charge covers direct disposals (selling the property) and indirect disposals (selling shares in a company that derives 75% or more of its value from UK land, above certain thresholds).
What rates do non-residents pay?
Non-residents pay the same capital gains tax rates as UK residents. For residential property in 2026/27, that is 18% on the portion of the gain within the basic-rate band and 24% on the rest.
| Scenario | Gain | UK income | Estimated tax |
|---|---|---|---|
| No UK income | £80,000 | £0 | £16,218 |
| Some UK rental income | £80,000 | £40,000 | £18,480 |
| No UK income, large gain | £150,000 | £0 | £33,018 |
Non-resident CGT on residential property, 2026/27. The basic-rate band is available against UK income, so a non-resident with no UK income uses more of the band.
A non-resident with no UK income has the full basic-rate band available, so a larger portion of the gain falls at 18%. UK rental income uses up part of the band, pushing more of the gain into the 24% bracket.
Is the annual exempt amount available to non-residents?
Yes. Non-residents get the same £3,000 annual exempt amount as UK residents. It reduces the taxable gain before any tax is calculated.
Joint owners who are both non-resident each get their own allowance, sheltering £6,000 between them. The allowance cannot be carried forward to a future year.
The annual exempt amount applies against total capital gains in the tax year, not per property. A non-resident selling two UK properties in the same year has only one £3,000 allowance to set against both gains.
Can non-residents claim Private Residence Relief?
Generally not. Private Residence Relief (PRR) requires the property to have been the seller's only or main home, and for a non-UK resident that condition is very difficult to meet. A person living abroad whose main home is overseas cannot claim PRR on a UK property they once lived in.
There are limited exceptions. A non-resident who spends at least 90 midnights per tax year in the UK property may be able to nominate it as a main residence for that period. In practice, this applies to a small number of cases and the rules are strict.
How do non-residents report and pay?
Every disposal of UK property by a non-resident must be reported to HM Revenue and Customs within 60 days of completion. This is mandatory regardless of whether any tax is due, even if the sale was at a loss.
The return is filed through the Capital Gains Tax on UK property account, the same system UK residents use. The non-resident must register for Self Assessment if they do not already have a UK tax reference.
- Deadline: 60 days from the date of completion, not exchange.
- Payment: due at the same time as filing.
- Penalty for late filing: a fixed amount, then further penalties and daily interest.
- Double taxation relief: if the gain is also taxed in the seller's country of residence, a double taxation agreement may give credit for the UK tax paid. The details depend on the specific treaty.
Non-residents must report even if the sale is at a loss or the gain is below the annual exempt amount. This is stricter than the position for UK residents, who can usually skip the return when no tax is payable.
How is the gain calculated for properties owned before April 2015?
Non-residents who owned UK residential property before 5 April 2015 can choose how to calculate the gain. HM Revenue and Customs offers three methods:
- Market value rebasing: use the property's market value on 5 April 2015 as the base cost, so only the gain from that date onward is taxed. This is the default and is usually the most favourable.
- Time apportionment: split the total gain (from original purchase to sale) proportionally, so only the fraction of the ownership period from April 2015 onward is taxable.
- Whole gain: tax the entire gain from original purchase to sale. This is rarely beneficial but may suit a property that has fallen in value since April 2015.
The choice is made on the tax return and can be changed within the amendment window. Getting a reliable April 2015 valuation is important if the rebasing method is used, because it sets the base cost for the entire gain calculation.
Estimate non-resident CGT with the UK calculator
Common questions
Do non-residents pay capital gains tax on UK property?
Yes. Non-residents pay CGT at the same rates as UK residents: 18% and 24% on residential property. Every disposal must be reported within 60 days.
Can a non-resident claim Private Residence Relief on UK property?
Generally not. PRR requires the property to be the seller's main home, and a person living abroad whose main home is overseas usually cannot meet that condition.
Do non-residents get the annual exempt amount?
Yes. The £3,000 annual exempt amount applies to non-residents on the same basis as UK residents.
Must a non-resident report even if no tax is due?
Yes. Non-residents must file the 60-day return on every disposal of UK property, including sales at a loss or gains below the annual exempt amount.
When did non-resident CGT on UK property start?
NRCGT on residential property has applied since 6 April 2015. It was extended to all UK property and land, including commercial, from 6 April 2019.
This is an estimate for general information only, not tax, legal or financial advice. Tax rules are complex and depend on your circumstances, and figures may not reflect the latest changes. Confirm your position with HM Revenue & Customs (gov.uk) or a qualified tax adviser before acting. The terms of use set out the limits of this estimate and of our liability.
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