CGT on UK property sold from Australia is charged in both countries. The UK taxes the gain because the property is in the UK, usually only on the growth since 5 April 2015, at 18% or 24%, and you must report the sale to HMRC within 60 days of completion. Australia then taxes the same gain as part of your worldwide income, but gives you a foreign income tax offset for the UK tax paid, so you are not fully taxed twice.
The UK-Australia double tax treaty confirms that the UK keeps the first right to tax gains on UK land. You can read the treaty on GOV.UK’s Australia tax treaties page.
This guide explains how CGT on UK property sold from Australia works on both sides, the reporting deadlines, a worked example for 2026/27, and how to avoid paying more than you need to.
CGT on UK Property Sold From Australia: The UK Side
If you live in Australia and are not UK resident in the tax year of the sale, you are a non-resident for UK tax. You pay UK CGT on UK homes, buy-to-lets, commercial property and land. The key UK rules are:
- Rebasing: for UK homes owned before 6 April 2015, usually only the gain since that date is taxed. See our guide to non-resident CGT rebasing.
- Rates: 18% within your unused UK basic rate band and 24% above it. Only your UK income counts towards the band.
- Annual exempt amount: £3,000 for 2026/27.
- Reporting: a non-resident CGT return within 60 days of completion, even if no tax is due. See the non-resident CGT 60 day rule.
If the property was once your home, Private Residence Relief for non-residents can cover the years you lived there, but years in Australia only qualify if you met the 90-day test.
The Australian Side
Australian tax residents are taxed on worldwide capital gains, including UK property. In broad terms:
- the gain is calculated in Australian dollars, using exchange rates at purchase and sale, so currency movements change the figure,
- individuals who are Australian residents and held the property for at least 12 months can usually claim the 50% CGT discount,
- the gain falls into the Australian tax year of 1 July to 30 June, and
- you claim a foreign income tax offset for the UK CGT paid, capped at the Australian tax on that gain.
Australian rules are complex, especially if you moved to Australia after buying the property, so take Australian advice on that side. This guide focuses on the UK rules.
Worked Example: Selling a London Flat From Sydney
Sarah moved to Sydney in 2014. She bought a London flat in 2012 for £300,000. It was worth £380,000 on 5 April 2015. She sells in September 2026 for £470,000, with £7,000 of selling costs. She has no UK income.
| UK calculation | Amount |
|---|---|
| Sale price | £470,000 |
| Less selling costs | (£7,000) |
| Less 5 April 2015 value (rebasing) | (£380,000) |
| Gain | £83,000 |
| Less annual exempt amount | (£3,000) |
| Taxable gain | £80,000 |
| £37,700 at 18% | £6,786 |
| £42,300 at 24% | £10,152 |
| UK CGT due within 60 days | £16,938 |
Sarah reports the gain on her Australian return for the year ending 30 June 2027 and claims a foreign income tax offset for the £16,938, converted into Australian dollars. Because Australia measures the whole gain since 2012, the Australian figure can be larger than the UK one. Try our non-resident CGT calculator for the UK side.
Timing and Order of Payments
| Step | Deadline |
|---|---|
| UK non-resident CGT return and payment | 60 days after completion |
| UK Self Assessment (if you already file one) | 31 January after the UK tax year |
| Australian tax return with foreign income tax offset | Usually 31 October after 30 June, later with a tax agent |
Pay the UK first and keep HMRC’s confirmation, as you will need it to support the Australian offset. Our guide on how to file a non-resident CGT return walks through the UK filing.
Ways to Reduce the Overall Bill
- Use rebasing or time apportionment, whichever gives the lower UK gain.
- Keep evidence of improvement costs, which reduce the gain in both countries.
- Consider joint ownership, so two owners each use the £3,000 exemption and a UK basic rate band.
- Check the Australian timing, as the 30 June year-end can affect which year the gain falls in.
- Claim the offset correctly, as unclaimed UK tax is lost.
GOV.UK explains how relief works if you’re taxed twice, and its guide to tax if you live abroad and sell your UK home covers the UK basics.
Frequently Asked Questions
Do I have to pay capital gains tax on UK property if I live abroad?
Yes. Non-residents pay UK CGT on UK property, usually only on the gain since 5 April 2015, and must report every sale within 60 days of completion.
Do I have to pay UK capital gains tax if I’m an Australian resident?
Yes, on UK land and property. Most other UK assets, such as ordinary shares, are outside UK CGT once you are non-resident, though Australia may still tax them.
What is the 6 year rule for capital gains tax in Australia?
It is an Australian rule that can let you treat a former main residence as exempt for up to six years while it is rented out. Whether it can help with a UK property depends on your Australian residency history, so check with an Australian adviser.
Do I need to pay capital gains tax on overseas property in Australia?
Australian residents pay Australian CGT on overseas property gains, but can claim a foreign income tax offset for UK tax paid on the same gain.
Will I be taxed twice on the same gain?
Usually not in full. The UK taxes first, and Australia gives an offset for the UK tax, up to the Australian tax on that gain.
Conclusion
CGT on UK property sold from Australia means a UK return within 60 days, UK tax at 18% or 24% on the gain since 2015, and an Australian return that credits the UK tax. The two countries measure the gain differently, so the bills rarely match exactly.
Get your 2015 valuation and cost records together before you sell, file the UK return on time, and keep proof of payment for your Australian offset.
For help with a UK property sale from Australia, 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.
