UK property CGT for overseas investors depends on how you hold the property. Overseas individuals pay Capital Gains Tax at 18% or 24% on gains from UK property, while overseas companies pay Corporation Tax on the gain at up to 25%. In most cases only the gain since April 2015 (homes) or April 2019 (commercial property) is taxed, and every disposal must be reported to HMRC within 60 days of completion.
The UK taxes overseas investors on UK land wherever they live, including indirect holdings through property-rich companies and funds. HMRC’s guide to working out your tax as a non-resident selling UK property sets out the official rules.
This guide explains UK property CGT for overseas investors in 2026, compares individuals, companies and trusts, and shows a worked example of the tax on the same gain.
Who Counts as an Overseas Investor?
For UK tax, an overseas investor is anyone who is not UK resident in the tax year of the sale. That includes:
- individuals living abroad, including British expats,
- companies resident outside the UK,
- non-resident trusts, and
- investors in funds or companies that own UK property.
Residence for individuals is decided by the statutory residence test. If you are unsure, read our guide on whether non-residents have to pay Capital Gains Tax in the UK.
UK Property CGT for Overseas Investors by Ownership Type
| Investor | Tax on the gain | Annual exempt amount | How it is reported |
|---|---|---|---|
| Individual | CGT at 18% or 24% | £3,000 | Non-resident CGT return within 60 days |
| Overseas company | Corporation Tax at up to 25% | None | Corporation Tax return |
| Non-resident trust | CGT at 24% | Reduced amount | Non-resident CGT return within 60 days |
Overseas companies that own UK property have also paid Corporation Tax, not Income Tax, on UK rental profits since April 2020. Residential property worth over £500,000 held in a company may also fall within the Annual Tax on Enveloped Dwellings.
How the Taxable Gain Is Calculated
- Residential property owned before 6 April 2015: the gain is usually rebased to the 5 April 2015 market value. Individuals and trusts can instead choose time apportionment or the whole-period gain.
- Commercial property and land owned before 6 April 2019: the gain is rebased to the 5 April 2019 market value, unless you elect to use the original cost.
- Property bought after those dates: the gain is the sale price less the purchase price and allowable costs.
Investors in a company that is UK property-rich, meaning at least 75% of its value comes from UK land, are taxed on a sale of shares if they hold 25% or more. Our guide to non-residents CGT on shares covers these indirect disposals.
Worked Example: Individual vs Company
An overseas investor sells a UK flat bought in 2018 for £400,000. The sale in 2026/27 produces a gain of £200,000 after costs. The investor has no other UK income.
| Step | Held personally | Held through an overseas company |
|---|---|---|
| Gain | £200,000 | £200,000 |
| Annual exempt amount | (£3,000) | Not available |
| Taxable gain | £197,000 | £200,000 |
| Tax | £37,700 at 18% = £6,786 £159,300 at 24% = £38,232 |
£200,000 at 25% = £50,000 |
| Total UK tax | £45,018 | £50,000 |
A company structure is not automatically cheaper. Profits taken out of the company may also be taxed again in the investor’s country of residence. Use our property CGT calculator to test different figures, and take advice before choosing how to hold a new investment.
Reporting and Paying From Overseas
Overseas individuals and trusts must report every UK property disposal within 60 days of completion, even if no tax is due. Our guides to the non-resident CGT 60 day rule and filing a non-resident CGT return explain the process. Overseas companies report the gain on their Corporation Tax return. HMRC’s guidance on telling HMRC about CGT on UK property if you’re not a UK resident explains the individual reporting rules.
If your country of residence also taxes the gain, a double tax treaty usually lets you claim credit for the UK tax. GOV.UK publishes the UK’s tax treaties by country.
Planning Points for Overseas Investors
- Get valuations at the rebasing dates for property held before April 2015 or April 2019.
- Use joint ownership where suitable, so each owner can use their own annual exempt amount and basic rate band.
- Time the sale for a tax year with little other UK income.
- Keep records of improvement costs, which reduce the gain.
- Plan any return to the UK, as the temporary non-residence rules can tax other gains if you come back within five years.
Frequently Asked Questions
Does CGT apply to foreign investors?
Yes, on UK land and property and on shares in UK property-rich companies. Overseas individuals pay CGT at 18% or 24%, and overseas companies pay Corporation Tax on the gain.
Do non-residents pay CGT on UK property?
Yes. Non-residents pay CGT on UK residential property gains since April 2015 and on other UK property since April 2019, and must report each sale within 60 days.
What is the UK expat 5 year rule?
It usually refers to the temporary non-residence rule. If you return to the UK within five years, certain gains made while abroad can be taxed in the year you return.
How does HMRC know if I own a property abroad?
HMRC receives data from Land Registry, letting agents and, for overseas assets, from other tax authorities under international information-sharing agreements. UK property sales by non-residents are also flagged through conveyancing records.
Is it better to hold UK property personally or through a company?
It depends on the size of the gain, rental profits, how you will take money out and your home country’s rules. A company pays up to 25% with no annual exemption, so it is not always cheaper.
Get expert help: Our capital gains tax services cover calculations, reliefs and HMRC returns from start to finish. See our non-resident CGT page for how we can help, or work with us remotely if you need a capital gains tax accountant in London or elsewhere in the UK.
Conclusion
UK property CGT for overseas investors is charged whether you live in the UK or not. Individuals pay 18% or 24%, companies pay up to 25%, and in most cases only the gain since the 2015 or 2019 rebasing date is taxed. Every disposal by an overseas individual or trust must be reported within 60 days.
The structure you hold the property through, the timing of the sale and your home country’s treaty with the UK all affect the final tax bill, so plan before you sell.
For advice on UK property gains as an overseas investor, speak to our non-resident CGT specialists. Call us on +44 (0)1204 859315 or send us your question for a free initial consultation and a fixed-fee quote within 24 hours.
