UK Property

Do non-residents pay Capital Gains Tax on UK property?

Answered by Jordan Onraet-Wells, Founder & Chartered Tax Adviser (CTA). Published 17 July 2026. Last reviewed 17 July 2026.

The short answer

Yes. Non-residents pay UK Capital Gains Tax when they dispose of UK property: residential property since 6 April 2015, and commercial property and certain indirect disposals since 6 April 2019. For 2026/27 the residential rates are 18% on gains within your unused basic rate band and 24% above it, with a £3,000 annual exempt amount per person. Every disposal must be reported to HMRC within 60 days of completion, even if no tax is due.

Non-residents pay UK CGT on disposals of UK residential property, and since 6 April 2019 on commercial property and certain indirect disposals (shares in companies deriving at least 75% of their value from UK land) too.
2026/27 residential rates: 18% within your unused basic rate band and 24% above it, with a £3,000 annual exempt amount per person.
Every disposal must be reported and any tax paid within 60 days of completion, even with no tax to pay or a loss.
Residential property held before 6 April 2015 is normally rebased to its 5 April 2015 value, so generally only growth since that date is taxed.
Late reporting triggers an automatic £100 penalty, with further penalties after 6 and 12 months, plus interest on late-paid tax.
Private Residence Relief can still apply, but a non-resident must spend at least 90 midnights in the property in a tax year for that year to count.

The 60-day trap: report even with no tax to pay

Unlike UK residents, non-residents must report every disposal of UK property or land to HMRC within 60 days of the completion date, even where there is no tax to pay, a loss arises, or a relief covers the whole gain. The clock runs from completion, not exchange of contracts. Missing the deadline triggers an automatic £100 penalty, a further £300 or 5% of the tax due (whichever is higher) after 6 months and again after 12 months, plus interest on any late-paid tax. Being abroad or not knowing about the rule is rarely accepted as a reasonable excuse.

How the gain is worked out

Residential property held before 6 April 2015 is normally rebased to its market value on 5 April 2015, and commercial property and indirect disposals to 5 April 2019, so only later growth is taxed. For residential disposals you can elect for straight-line time apportionment or the whole-period gain where that gives a better result; the election is irrevocable for that disposal, so compare the methods before filing. Private Residence Relief can reduce or remove the gain on a former home, but as a non-resident you (or your spouse or civil partner) must spend at least 90 midnights in the property during a tax year for that year to qualify.

What to do before you sell

Obtain a 5 April 2015 valuation early and check whether Private Residence Relief applies. Your home country may also tax the gain, but the UK taxes UK land first and a double tax treaty normally gives credit for the UK tax. If you are in Self Assessment you must also report the disposal on your annual return, where the 60-day payment is credited. Our full guide to CGT on UK property for non-residents covers rates, rebasing and reliefs in detail, and our expat Self Assessment guide covers the annual filing.

Go deeper

Sources and further reading

This is general information for the 2026/27 UK tax year, not personal tax advice; speak to a Chartered Tax Adviser about your own position.

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