Yes, a non-resident selling UK property must deal with UK Capital Gains Tax. Since 6 April 2015 non-residents have been taxed on gains from UK homes, and since 6 April 2019 on all UK land and property, including commercial buildings and shares in property-rich companies. You must report every sale to HMRC within 60 days of completion, even if there is no tax to pay or you made a loss.
The good news is that only the gain made after April 2015 (or April 2019 for non-residential property) is normally taxed, and you still get the £3,000 annual exempt amount. For the official overview, see GOV.UK’s guidance on tax if you live abroad and sell your UK home.
This guide explains the CGT rules for a non-resident selling UK property, the three ways to work out the gain, the rates for 2026/27, a full worked example and the mistakes that lead to penalties.
Non-Resident Selling UK Property: Who Pays CGT?
You count as non-resident if you are not UK resident under the statutory residence test for the tax year of the sale. If so, you pay UK CGT when you sell or give away:
- UK residential property, such as a house or flat, owned on or after 6 April 2015.
- UK non-residential property, such as shops, offices or land, from 6 April 2019.
- Indirect interests, such as shares in a company where at least 75% of the value comes from UK land, if you hold 25% or more.
Non-resident companies pay Corporation Tax on UK property gains instead of CGT. Trustees and personal representatives follow similar rules. Our guide on whether non-residents have to pay Capital Gains Tax in the UK covers the residence test in more detail.
How the Gain Is Worked Out for Non-Residents
If you owned a UK home before 6 April 2015, you can choose one of three methods and pick whichever gives the lowest gain:
| Method | How it works | Best when |
|---|---|---|
| Rebasing (default) | Only the rise in value since the market value at 5 April 2015 is taxed | The property grew a lot in value before 2015 |
| Time apportionment | The whole gain is spread evenly over the ownership period and only the post-April 2015 share is taxed | Values were flat or fell after 2015 |
| Whole-period gain | The gain over the whole ownership period is calculated | You have a loss to claim |
For commercial property and land owned before 6 April 2019, the gain is rebased to the market value at 5 April 2019, unless you elect to use your original cost. A professional valuation at the rebasing date is strongly recommended because HMRC can challenge a guessed figure. Try our non-resident CGT calculator for a quick estimate.
Non-Resident CGT Rates and Allowances for 2026/27
Non-residents pay the same rates as UK residents. Gains on residential property are taxed at 18% within the basic rate band and 24% above it. Since 30 October 2024 the same 18% and 24% rates apply to other assets, including commercial property. See our full guide to Capital Gains Tax rates for 2026.
Which rate applies depends on your UK taxable income only, not your overseas income. If you have little or no UK income, part of the gain will usually be taxed at 18%. You also get the full £3,000 annual exempt amount for CGT, the same as a UK resident.
Private Residence Relief When You Live Abroad
If the property was once your main home, Private Residence Relief can still reduce the gain. The last 9 months of ownership always qualify if the home was your main residence at some point.
However, since April 2015 a non-resident can only treat a UK property as their residence for a tax year if they (or their spouse or civil partner) spent at least 90 nights there in that year. Years spent living abroad and letting the property out usually fail this 90-day test, so that part of the gain is taxable.
The 60-Day Reporting Rule for Non-Residents
A non-resident must file a non-resident CGT return within 60 days of completion for every disposal of UK property. This applies even when:
- there is no tax to pay because of reliefs or the annual exempt amount,
- you made a loss, or
- you already file a Self Assessment return.
The return is filed online through a Capital Gains Tax on UK property account, and any tax is due on the same 60-day deadline. Our guide to the 60-day Capital Gains Tax rule explains the process step by step, and HMRC’s helpsheet HS307 sets out the rules in full.
Worked Example: Non-Resident Selling a UK Flat in 2026/27
Priya bought a London flat in January 2010 for £250,000. She moved to Dubai in 2012 and let the flat out. Its market value on 5 April 2015 was £400,000. She sells in June 2026 for £520,000, paying £8,000 in selling costs. She has no UK income.
| Step | Amount |
|---|---|
| Sale price | £520,000 |
| Less selling costs | (£8,000) |
| Less 5 April 2015 market value (rebasing) | (£400,000) |
| Gain under rebasing | £112,000 |
| Gain under time apportionment (134 of 197 months of £262,000) | £178,213 |
| Lower gain chosen (rebasing) | £112,000 |
| Less annual exempt amount | (£3,000) |
| Taxable gain | £109,000 |
| £37,700 at 18% | £6,786 |
| £71,300 at 24% | £17,112 |
| Total CGT due within 60 days | £23,898 |
Rebasing saves Priya tax on £66,213 of gain compared with time apportionment. She may also be able to claim credit for this UK tax in her country of residence under a double tax agreement, depending on local rules.
Common Mistakes When a Non-Resident Sells UK Property
- Not filing because no tax is due. Non-residents must report every UK property sale within 60 days, including losses.
- Using the wrong calculation method. Always compare rebasing and time apportionment before you file.
- No valuation at 5 April 2015. Without one, you cannot support a rebased cost if HMRC asks.
- Assuming Private Residence Relief applies. The 90-day test often removes relief for years spent abroad.
- Forgetting the overseas tax return. Your country of residence may also tax the gain.
Late returns trigger penalties and interest. If you have already missed the deadline, read our guide on what to do if you miss the CGT deadline.
Frequently Asked Questions
What happens if I sell my home in the UK while non-resident?
You must report the sale to HMRC within 60 days of completion and pay any CGT due. Usually only the gain since 5 April 2015 is taxed, and Private Residence Relief may cover the years it was your home.
Does Capital Gains Tax apply to non-residents?
Yes, for UK land and property and shares in UK property-rich companies. Non-residents generally do not pay UK CGT on other assets, such as most shares, unless the temporary non-residence rules apply.
Do non-residents get the CGT annual exemption?
Yes. Non-resident individuals get the same £3,000 annual exempt amount as UK residents for 2026/27.
How do I calculate my Capital Gains Tax as a non-resident in the UK?
Work out the gain using rebasing, time apportionment or the whole-period method, deduct allowable costs and reliefs, take off the £3,000 exemption, then apply 18% or 24% depending on your UK income.
Does the buyer withhold tax when a non-resident sells UK property?
No. The UK has no withholding tax on property sales. The seller is responsible for filing the return and paying the tax within 60 days.
Can I be taxed twice on the same UK property gain?
Possibly, but most double tax agreements let you claim credit in your country of residence for the UK tax paid. Check the treaty and local rules before you sell.
Get expert help: Every situation is different, so speak to a qualified capital gains tax accountant before you act. Our non-resident CGT team can review your figures, and we also work with clients looking for capital gains tax advice in Manchester and across the UK.
Conclusion
A non-resident selling UK property pays UK CGT, but usually only on the gain since April 2015 for homes or April 2019 for other property. You keep the £3,000 annual exempt amount and the 18% rate where your UK income is low. The most important rule is the 60-day deadline: every sale must be reported, whether or not tax is due.
Get a valuation at the rebasing date, compare the calculation methods and plan the sale date before you exchange contracts.
For help with a non-resident property sale, 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.
