Yes, you can claim Private Residence Relief as a non-resident, but the Private Residence Relief non-resident rules are stricter. Since 6 April 2015, a UK home only counts as your residence for a tax year spent abroad if you, your spouse or civil partner spent at least 90 nights in it during that year. Years that fail the 90-day test are not covered, but the last 9 months of ownership always qualify if the property was your main home at some point.
This catches many expats who move abroad and let their former home. GOV.UK explains the rules on tax if you live abroad and sell your UK home.
This guide explains how the Private Residence Relief non-resident rules work, how the relief is calculated, a full worked example and the mistakes that cost expats the most.
How the Private Residence Relief Non-Resident Rules Work
Private Residence Relief exempts the part of a gain that relates to periods when a property was your only or main home. For non-residents, three extra rules apply:
- The 90-day test: for each tax year you are non-resident, the home only qualifies if you or your spouse or civil partner spent at least 90 nights there.
- Non-qualifying years: a year that fails the test is treated as a year the home was not your residence, so that part of the gain is taxable.
- Nomination: you must nominate the property as your main residence when you report the sale.
Years when you were UK resident and lived in the home qualify in the normal way.
What Still Qualifies When You Live Abroad
| Period | Qualifies for relief? |
|---|---|
| Years you were UK resident and lived in the home | Yes |
| Non-resident years with 90+ nights in the home | Yes |
| Non-resident years with fewer than 90 nights | No |
| Final 9 months of ownership | Yes, if it was your main home at some point |
| Periods let to tenants while you were abroad | No, unless the 90-day test was met |
The usual periods of absence relief, such as up to three years away for any reason, cannot turn a non-qualifying year into a qualifying one.
How the Gain Is Split
Most non-residents use rebasing, so only the gain since 5 April 2015 is in charge. Relief is then given for the qualifying months out of the total months owned since that date. Our guide to a non-resident selling UK property explains the calculation methods, and HMRC’s guide to working out your tax as a non-resident covers the official rules.
Worked Example: Expat Selling a Former Home
Tom bought a house in Manchester in 2010 and lived there until he moved to Dubai in April 2018. He let it out from then and sells in April 2026 for £370,000. Its value on 5 April 2015 was £280,000. His UK rental profit is within his personal allowance.
| Step | Amount |
|---|---|
| Gain since 5 April 2015 (£370,000 less £280,000) | £90,000 |
| Months owned since April 2015 | 132 |
| Qualifying months: April 2015 to April 2018 (36) + final 9 months | 45 |
| Private Residence Relief (£90,000 × 45/132) | (£30,682) |
| Chargeable gain | £59,318 |
| Less annual exempt amount | (£3,000) |
| Taxable gain | £56,318 |
| £37,700 at 18% + £18,618 at 24% | £6,786 + £4,468 |
| Total CGT | £11,254 |
If Tom had spent 90 nights a year in the house while living in Dubai, more of the gain would have been covered. He must still report the sale within 60 days of completion. See the non-resident CGT 60 day rule.
Meeting the 90-Day Test Under the Private Residence Relief Non-Resident Rules
If you keep a UK home while working abroad, the 90-day test can protect the relief for those years. Practical points:
- Count midnights. A night counts if you are in the property at midnight. Nights spent by your spouse or civil partner also count.
- Keep evidence. Flight bookings, boarding passes and utility usage help prove the nights if HMRC asks.
- Do not let the property in years you plan to rely on the test, as tenants usually make it impossible to spend 90 nights there.
- Watch your UK residence. Spending long periods in the UK can also make you UK resident under the statutory residence test, which changes your wider tax position.
Letting Relief and Other Reliefs
Since April 2020, letting relief only applies if you lived in the property at the same time as your tenant. Most expats who let the whole home cannot claim it. The £3,000 annual exempt amount and deductions for improvement costs still apply. GOV.UK’s guide to working out tax relief when you sell your home covers the general rules.
Common Mistakes Expats Make
- Assuming a former home is fully exempt. Non-qualifying years abroad are taxable.
- Not counting nights. Keep travel records if you rely on the 90-day test.
- Forgetting to nominate the home when you report the sale.
- Not reporting because relief covers the gain. Non-residents must still file within 60 days. See how to file a non-resident CGT return.
Frequently Asked Questions
Who qualifies for Private Residence Relief?
Anyone selling a property that was their only or main home. Non-residents qualify for years they were UK resident and lived there, years they met the 90-day test, and the final 9 months.
What is the 36 month rule for Private Residence Relief?
It is the old final period exemption. For sales since April 2020, the final period is 9 months, or 36 months if you are disabled or moving into long-term care.
Do non-residents in the UK have to pay stamp duty?
Yes. Non-UK residents buying residential property in England or Northern Ireland pay a 2% surcharge on top of the normal Stamp Duty Land Tax rates.
Can my spouse’s nights count towards the 90-day test?
Yes. Nights spent in the property by you, your spouse or your civil partner all count.
Does Private Residence Relief cover the years before April 2015?
If you use rebasing, the gain before 5 April 2015 is not taxed at all, so relief for those years is not needed.
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
You can claim Private Residence Relief as a non-resident, but only for years you were UK resident and lived in the home, years you met the 90-day test, and the final 9 months. Years spent abroad with the home let out are usually taxable, so most expats selling a former home owe some CGT.
Count your nights, keep your records and work out the qualifying months before you sell.
For help with a former home sold from abroad, speak to our non-resident CGT specialists or our property 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.
