Do non-residents pay Capital Gains Tax on shares in the UK? In most cases, no. Under the rules on non-residents CGT on shares, if you are non-resident for the tax year in which you sell, gains on UK and overseas shares are normally outside UK CGT. There are three key exceptions: shares in UK property-rich companies, the temporary non-residence rules for people who return within five years, and shares used in a UK branch or agency.
Your country of residence may still tax the gain under its own rules. For HMRC’s overview, see GOV.UK’s guidance on selling assets if you live abroad.
This guide explains when non-UK residents pay Capital Gains Tax on shares in the UK, how the exceptions work, what happens in the year you leave the UK, and a worked example for 2026/27.
Non-Residents CGT on Shares: The General Rule
UK CGT is mainly a tax on UK residents. Once you are non-resident under the statutory residence test, you generally have no UK CGT to pay when you sell:
- shares listed on the London Stock Exchange or overseas markets,
- shares in private UK trading companies,
- funds, investment trusts and ETFs, unless they are UK property-rich, and
- shares held in an ISA, which are free of UK tax anyway.
This is very different from UK land and property, which non-residents are taxed on. Our guide to a non-resident selling UK property explains those rules, and our page on whether non-residents have to pay Capital Gains Tax in the UK covers residence status.
Exception 1: Shares in UK Property-Rich Companies
Since 6 April 2019, non-residents pay UK CGT on “indirect disposals” of UK land. This catches shares in a company that is UK property-rich, meaning at least 75% of its gross asset value comes from UK land and property.
The charge applies if you held a 25% or greater interest in the company at any time in the two years before the sale. For property-rich funds, the 25% test is usually removed, so even small holdings can be caught. HMRC’s manual on UK property richness explains how the 75% test works.
An indirect disposal must be reported on a non-resident CGT return within 60 days of completion, even if no tax is due. See our guide to the 60-day Capital Gains Tax rule.
Exception 2: Temporary Non-Residence Rules
The temporary non-residence CGT rules stop people leaving the UK briefly to sell shares tax-free. They apply if:
- you were UK resident in at least 4 of the 7 tax years before you left, and
- your period of non-residence lasts five years or less.
If both are true, gains on shares you owned before leaving and sold while abroad are taxed in the UK in the tax year you return. Shares you bought after leaving are generally not caught.
Exception 3: Shares Used in a UK Branch or Agency
If you trade in the UK through a branch or agency, gains on assets used for that trade, including shares, remain within UK CGT even while you are non-resident. This mainly affects self-employed traders and partners rather than private investors.
Selling Shares in the Year You Leave the UK
You are taxed as UK resident for the whole tax year you leave unless split-year treatment applies. If it does, gains made after your departure date are usually outside UK CGT, but gains made before you leave are taxed at the normal rates.
For 2026/27, share gains are taxed at 18% within the basic rate band and 24% above it, after the £3,000 annual exempt amount. See our guides to CGT rates for 2026 and the CGT annual exempt amount, or use our shares CGT calculator.
Worked Example: Non-UK Resident Selling Shares in 2026/27
Tom has lived in the UK all his life. He moves to Spain on 1 May 2026 and qualifies for split-year treatment. He owns shares bought for £40,000 and sells them in August 2027 for £140,000, a gain of £100,000.
| Scenario | UK CGT position | UK CGT due |
|---|---|---|
| Tom stays abroad for more than five years | Sale made while non-resident, so outside UK CGT | £0 |
| Tom returns to the UK in July 2030 | Temporary non-residence applies, so the gain is taxed in 2030/31 | See below |
| Tom sold before leaving, in April 2026 | Still UK resident, so the gain is taxed in 2026/27 | See below |
If the gain is taxed in the UK and Tom is a higher-rate taxpayer that year:
| Step | Amount |
|---|---|
| Gain on shares | £100,000 |
| Less annual exempt amount | (£3,000) |
| Taxable gain | £97,000 |
| CGT at 24% | £23,280 |
If Tom returns within five years, he can usually claim credit for any Spanish tax already paid on the same gain, so he is not taxed twice.
Reporting Share Gains as a Non-Resident
If none of the exceptions apply, there is normally nothing to report to HMRC for a share sale made while non-resident. If a gain is taxable in the UK, for example under temporary non-residence, it goes on your Self Assessment return for the relevant year. Our guide on how to report Capital Gains Tax to HMRC explains the steps. For a general overview of chargeable assets, see what you pay CGT on at GOV.UK.
Frequently Asked Questions
Do non-residents pay tax on capital gains in the UK?
Only on certain assets. Non-residents pay UK CGT on UK land and property and on shares in UK property-rich companies. Most other share gains are outside UK CGT unless the temporary non-residence rules apply.
How do non-residents report Capital Gains Tax in the UK?
Gains on UK property and property-rich shares go on a non-resident CGT return within 60 days of completion. Gains taxed under temporary non-residence go on the Self Assessment return for the tax year you return.
Do non-residents get the CGT annual exemption?
Yes. If a non-resident has a UK chargeable gain, they get the same £3,000 annual exempt amount as UK residents.
Do I pay UK tax on shares if I move abroad?
Not on shares sold after you become non-resident, provided you stay away for more than five years and the shares are not in a UK property-rich company. Shares sold before you leave are taxed in the UK.
Do I pay tax on UK dividends as a non-resident?
Dividends are income, not capital gains. The UK does not withhold tax on most dividends, but your country of residence will usually tax them.
Should I sell shares before or after leaving the UK?
It depends on the gain, your new country’s tax rules and how long you plan to be away. Selling after you leave can save UK CGT, but only if you stay non-resident for more than five years.
Get expert help: If you are searching for a capital gains tax accountant near me, our team works with clients across the UK by phone and video. Our non-resident CGT service and wider capital gains tax services are designed for situations like this one.
Conclusion
Most non-UK residents do not pay Capital Gains Tax on shares in the UK. The main exceptions are shares in UK property-rich companies, gains caught by the temporary non-residence rules if you return within five years, and shares used in a UK branch. The timing of a sale around your move abroad can make a large difference to your tax bill.
Check your residence status, the split-year rules and your new country’s tax treatment before you sell.
For help with share gains when you live abroad, speak to our shares and investments CGT specialists or our non-resident CGT team. 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.
