Guide

Capital Gains Tax on Selling Property Abroad: A Guide for UK Residents 2026/27

Written by James Whitfield · Last checked 18 October 2026 Checked against GOV.UK and the HMRC Capital Gains Manual

Quick answer

If you are UK resident, a gain on a house, flat or land you sell abroad is taxed in the UK at 18% or 24% in 2026/27, after the £3,000 allowance, and reported on your Self Assessment return.¹ The gain is worked out in pounds, converting the purchase price at the exchange rate when you bought and the sale price at the rate when you sold.³ Tax paid in the other country is usually credited against the UK bill, so overall you pay the higher of the two, not both.²

Key facts

The 60-day return is for UK property only. Overseas property goes on your Self Assessment return: by 31 January 2028 for a 2026/27 sale.
HMRC's real-time CGT service cannot be used to claim foreign tax credit relief on overseas property.⁴
Foreign tax credit relief is the lower of the foreign tax on the gain and the UK tax on the same gain.²
HMRC rejects working out the gain in the foreign currency and converting it at the end; each figure is converted on its own date.³
Private Residence Relief can apply to a home abroad that was your main residence.⁵

Do UK residents pay CGT on property sold abroad?

Yes. UK residents are taxed on worldwide gains, so the location of the property does not change whether CGT applies, only how you report it and what relief you get for local tax.¹ The same 2026/27 rules apply as for a UK second home: allowable costs, the £3,000 annual exempt amount, and 18% within your unused basic-rate band and 24% above it.

The old remittance basis for non-domiciled people ended on 6 April 2025. If you are in your first 4 years of UK residence after at least 10 years abroad, the foreign income and gains (FIG) regime may let you claim relief on foreign gains instead; it has to be claimed on the return.¹

How do you work out the gain in pounds?

Convert each amount into sterling at the exchange rate on the date it arose:³

the purchase price and buying costs at the rate on the date you bought;
each improvement at the rate on the date you paid for it;
the sale price and selling costs at the rate on the date you sold.

HMRC does not insist on one particular rate source but expects a reasonable one used consistently. Because the pound moves, your sterling gain can be larger or smaller than the gain in the local currency, and you can even have a sterling gain on a property that made a loss locally.

Before you pay HMRC, check every cost, loss and relief is in your figures: get your CGT Check report, £4.99 →

Worked example: a flat bought and sold in euros

Raj, a UK resident higher-rate taxpayer, bought a flat in 2012 for €150,000 with €12,000 of purchase taxes and fees, when €1 was worth £0.81. He sells in October 2026 for €240,000, paying €7,200 in selling costs, when €1 is worth £0.86. The local tax on the sale comes to the equivalent of £11,500.

Raj's UK CGT, 2026/27

Sale price: €240,000 × 0.86	£206,400
Less purchase price: €150,000 × 0.81	−£121,500
Less purchase costs: €12,000 × 0.81	−£9,720
Less selling costs: €7,200 × 0.86	−£6,192
Gain in pounds	£68,988
Less annual exempt amount	−£3,000
UK CGT at 24% on £65,988	£15,837.12
Less foreign tax credit relief (lower of £11,500 and £15,837.12)	−£11,500.00
UK CGT to pay by 31 January 2028	£4,337.12

In euros the gain was €70,800, worth £60,888 at the sale-date rate; the stronger euro since 2012 adds about £8,100 to Raj's sterling gain. His total tax is £15,837.12 (£11,500 abroad plus £4,337.12 in the UK), the UK figure, because the UK tax was the higher of the two.

How does foreign tax credit relief work?

You claim a credit for the foreign tax paid on the same gain, on the foreign pages of your Self Assessment return.² The credit is capped at the UK tax on that gain, so:

if the foreign tax is lower than the UK tax, you pay the difference in the UK;
if the foreign tax is higher, you pay nothing more in the UK, but the excess is not refunded.

Some countries withhold tax from the buyer's payment or tax gains differently; the credit is for tax charged on the gain itself, and you need the foreign tax assessment or receipt as evidence. Where a double taxation agreement gives the other country the first right to tax, the UK still taxes the gain but gives the credit. Helpsheet HS261 has the detail.²

Can Private Residence Relief apply to a home abroad?

Yes, if the property was your only or main residence for a period, the usual time-based relief and the final 9 months apply.⁵ Since April 2015 there is an extra test: for a tax year in which you were not tax resident in the country where the home is, the home only counts as a residence for that year if you, your spouse or civil partner spent at least 90 nights there. A holiday home you used for a few weeks a year will not qualify. See CGT on a former home for how the relief is worked out.

How and when do you report the sale?

Register for Self Assessment by 5 October 2027 if you are not already registered.
Report the gain on the capital gains pages (SA108) and claim foreign tax credit relief on the foreign pages, attaching your computation with the exchange rates used.
Pay any UK tax by 31 January 2028.

The real-time CGT service will not take a foreign tax credit claim for overseas property, so Self Assessment is the route if you paid tax abroad.⁴ More on choosing a route: how to report CGT. Selling a UK property instead? That needs the 60-day return.

Work out the UK figure before the credit

Convert your figures to pounds as above and enter them in the calculator for the 2026/27 UK CGT, then deduct the foreign tax credit.

Open the CGT calculator

Frequently asked questions

Do UK residents pay capital gains tax on property sold abroad?

Yes. UK residents are taxed on gains worldwide, so a flat, house or land sold overseas is chargeable to UK CGT at 18% or 24% after the £3,000 allowance, unless a relief such as Private Residence Relief applies.

Do I need to file a 60-day return for property abroad?

No. The 60-day return is only for UK property. A gain on overseas property is reported through Self Assessment for the tax year of the sale.

What if I already paid tax in the other country?

You can usually claim foreign tax credit relief. The credit is the lower of the foreign tax on the gain and the UK CGT on the same gain, so you do not pay twice, but you pay the higher of the two overall.

Which exchange rate do I use?

Convert the purchase price at the rate on the date you bought and the sale price at the rate on the date you sold. You do not work out the gain in the foreign currency and convert it at the end.

Can I use HMRC's real-time CGT service for overseas property?

Not if you want foreign tax credit relief on overseas property: GOV.UK says the real-time service cannot be used for that, so report through Self Assessment.

This page is general information, not tax advice. It covers UK tax only; the other country's tax and reporting rules apply separately. Residence, split years, the FIG regime and treaty claims can need professional advice.

Sources & references

The rates, allowances and rules in this guide are drawn from the official HMRC and GOV.UK sources below, checked for the 2026/27 tax year. Each link opens the relevant government page in a new tab.

Verified against published HMRC and GOV.UK guidance.