CGT for Non-Residents Selling UK Property (2026/27)

Who has to pay and report?

Anyone who is not UK resident and disposes of UK property or land: a house, flat, buy-to-let, commercial property, land, or an indirect interest. An indirect disposal is selling an interest of at least 25% in an entity that gets 75% or more of its value from UK land.¹ Each joint owner reports their own gain or loss.¹

Non-resident companies pay Corporation Tax on UK property gains, not CGT, and report them on a Corporation Tax return.¹ Non-resident trustees must register with HMRC before reporting.¹ Other UK assets, such as shares in UK companies, are generally outside UK CGT while you are non-resident, unless you return within 5 years or the shares are in a "UK property rich" company.⁶

How is the gain worked out?

Only the gain since non-residents came into the UK charge is taxed. For a UK residential property you owned before 6 April 2015, the standard method uses its market value at 5 April 2015 as your cost, and only improvement costs from that date count.³ For non-residential property and indirect disposals owned before 6 April 2019, the standard date is 5 April 2019.²

Source: GOV.UK, Work out your tax if you're a non-resident selling UK property or land.² A property bought on or after 6 April 2015 simply uses its purchase price.

Worked example: a London flat sold from Spain

Maria has lived in Spain since 2013. She bought a London flat on 6 April 2011 for £300,000 plus £9,000 of buying costs. It was valued at £450,000 at 5 April 2015. She sells it on 6 October 2026 for £520,000, with £7,000 of selling costs. She has no other taxable UK income in 2026/27.

Time apportionment would be worse for Maria: her whole gain is £204,000 (£520,000 − £7,000 − £309,000), and 138 of her 186 months of ownership fall after 5 April 2015, giving about £151,355. GOV.UK says to add together all your taxable UK income to work out your rate;² with UK rent or a UK pension, more of the gain would fall at 24%.

Can you claim Private Residence Relief?

If the property was your home, relief may apply to all or part of the gain.² But a home in a country where you are not tax resident only qualifies for a tax year if you, or your spouse or civil partner, spent at least 90 days there in that year; a day counts if you are there at midnight, and the days do not need to be consecutive.⁴ So years spent living abroad in your own home overseas usually do not count for the UK flat you left behind, beyond the reliefs for absence. See Private Residence Relief for the time-based calculation.

How do you report and pay?

1. Work out the gain or loss, using the method that gives the lowest figure.
2. Create a Capital Gains Tax on UK property account and report within 60 days of completion; for completions between 6 April 2020 and 26 October 2021 the limit was 30 days.¹
3. Pay using the 14-digit reference beginning with X that HMRC gives you. A paper form is available if you cannot report online.¹
4. If you file Self Assessment, include the gain on your return as well; the tax already paid is taken into account.³

An agent can file for you once you have set up your own account and given them your account number.¹ Late reports and payments can bring interest and penalties; see CGT late filing penalties.

What if you move back to the UK?

If you were UK resident for at least 4 of the 7 tax years before you left and come back within 5 years, the temporary non-residence rules can treat certain gains you made while abroad as arising in the tax year you return, so they are taxed then.⁵ Assets you bought after leaving are generally outside these rules. If you are UK resident again when you sell, normal CGT applies to your worldwide gains instead: see CGT on property abroad for UK residents.

Frequently asked questions

This page is general information, not tax advice. Your residence status and any tax in the country where you live can change the answer; take advice before you sell.