Key facts
- Non-UK residents have paid CGT on UK residential property gains since 6 April 2015.
- From 6 April 2019, CGT extends to all UK land and property (including commercial) and indirect disposals.
- Non-residents must file a 60-day CGT return for all UK property disposals — even if no gain arises.
- Non-residents can elect to rebase to the April 2015 or April 2019 market value (depending on asset type).
- CGT rates for non-residents are the same as for UK residents: 18% (basic rate) and 24% (higher rate).
History of Non-Resident CGT
The taxation of non-UK residents on UK property gains has expanded significantly over the past decade:[1]
| Date | Change |
|---|---|
| Before 6 April 2013 | ATED-related CGT applied to certain companies holding UK residential property valued over £2 million |
| 6 April 2015 | Non-Resident CGT (NRCGT) introduced for disposals of UK residential property by non-residents |
| 6 April 2019 | Extended to all UK land and property (residential and commercial) and indirect disposals |
| 27 October 2021 | Reporting deadline changed from 30 days to 60 days from completion |
Who Is Non-UK Resident?
Your UK tax residence is determined by the Statutory Residence Test (SRT), which considers the number of days you spend in the UK, your ties to the UK, and your working patterns.[5]
You are generally non-UK resident if you:
- Spend fewer than 16 days in the UK in the tax year (if you were not UK resident in any of the previous 3 tax years)
- Spend fewer than 46 days in the UK (if you were UK resident in one or more of the previous 3 tax years)
- Work full-time overseas with limited UK days
The SRT is complex, and residence can have significant CGT consequences. Professional advice is recommended for borderline cases.
What Is Taxable for Non-Residents?
Non-UK residents are liable to CGT on the following disposals:[2]
Direct Disposals of UK Property
- UK residential property (from 6 April 2015) — houses, flats, buy-to-let, holiday homes, land with planning permission for residential use
- UK non-residential property (from 6 April 2019) — commercial property, agricultural land, mixed-use property
- UK land (from 6 April 2019) — bare land, development land, agricultural land
Indirect Disposals
From 6 April 2019, non-residents are also liable to CGT on “indirect disposals”. This catches situations where a non-resident holds UK property through a corporate structure and disposes of shares rather than the property itself.[4]
An indirect disposal occurs when:
- A person disposes of shares or interests in an entity (company, partnership, or trust)
- The entity derives 75% or more of its gross asset value from UK land (a “property-rich” entity)
- The person holds (or has held within the previous 2 years) a 25% or greater interest in the entity
Exemptions from indirect disposal rules: The indirect disposal rules do not apply if the investor holds less than 25% of the entity, or if the entity is a widely held company (listed on a recognised stock exchange with dispersed ownership). These exemptions prevent the rules from catching portfolio investors.[4]
Rebasing Elections
Non-residents can elect to use the market value of the asset at a specific date as the base cost, instead of the original acquisition cost. This ensures that only gains accruing after the UK started taxing non-residents are charged:[2]
| Asset Type | Rebasing Date | Effect |
|---|---|---|
| UK residential property | 5 April 2015 | Only gains from April 2015 onwards are taxable |
| UK non-residential property and land | 5 April 2019 | Only gains from April 2019 onwards are taxable |
| Indirect disposals (shares in property-rich companies) | 5 April 2019 | Only gains from April 2019 onwards are taxable |
The rebasing election is made on the CGT return. If you do not make the election, the default position depends on when the asset was acquired:
- Residential property acquired before 5 April 2015: The default is a time-apportionment method, which splits the gain over the total period of ownership and taxes only the portion attributable to the period from 6 April 2015
- Other property acquired before 5 April 2019: Similar time-apportionment from 6 April 2019
Tip: You can choose the rebasing election, time-apportionment, or actual cost — whichever gives the best result. However, the rebasing election applies to all your disposals of that asset type, not just individual ones. If the rebasing produces a loss, the loss is restricted to nil (you cannot create an artificial loss through rebasing).
Reporting Requirements
Non-UK residents must file a 60-day CGT property return for every disposal of UK property or land, regardless of whether a gain or loss arises. This is a stricter requirement than for UK residents.[3]
The 60-Day Process
- Create a Capital Gains Tax on UK property account via Government Gateway
- File the return within 60 days of the completion date
- Pay any CGT due at the same time
- Include the disposal on your annual UK tax return (if you are within Self Assessment)
Indirect Disposals
Indirect disposals (shares in property-rich companies) are reported through Self Assessment, not the 60-day property return. They are due by 31 January after the end of the tax year.
CGT Rates for Non-Residents
Non-UK residents pay CGT at the same rates as UK residents:[1]
| Band | Rate (from 30 October 2024) |
|---|---|
| Basic rate | 18% |
| Higher / additional rate | 24% |
| Trusts | 24% |
| BADR (if qualifying) | 10% |
The rate depends on the non-resident’s UK taxable income (if any) and how the gain falls relative to the basic-rate band.
ATED-Related CGT (Historical)
Before 6 April 2019, ATED-related CGT applied to certain companies (including non-UK companies) that held UK residential property within the scope of the Annual Tax on Enveloped Dwellings (ATED). This was a separate CGT charge at 28% on gains attributable to periods when ATED applied.
ATED-related CGT was abolished for disposals on or after 6 April 2019. From that date, gains by non-resident companies on UK property are within the standard non-resident CGT regime (and, for UK-resident companies, within Corporation Tax on chargeable gains).
Double Taxation Relief
If you are taxed on the same gain in both the UK and your country of residence, you may be able to claim double taxation relief under a double tax treaty. The UK has treaties with over 130 countries. In most cases, the treaty allows the UK to tax gains on immovable property (land and buildings) situated in the UK, with the other country giving credit for UK tax paid.
Frequently Asked Questions
Do non-UK residents pay CGT on UK property?
Yes. Since 6 April 2015, non-UK residents have been liable to CGT on gains from disposing of UK residential property. From 6 April 2019, this was extended to all UK land and property, including commercial property. Non-residents must file a 60-day return for every UK property disposal, regardless of whether a gain arises.
What is an indirect disposal for CGT purposes?
An indirect disposal occurs when a non-resident disposes of shares (or other interests) in a company that derives 75% or more of its gross asset value from UK land. This rule, introduced on 6 April 2019, prevents non-residents avoiding CGT by holding UK property through a company and selling the shares instead of the property.
Can non-residents rebase their UK property to April 2015 or 2019 values?
Yes. Non-residents can elect to use the market value of the property at 5 April 2015 (for residential property) or 5 April 2019 (for non-residential property and indirect disposals) as the base cost. This means only gains accruing after those dates are taxable. The election must be made on the CGT return.
Do non-UK residents get the Annual Exempt Amount?
Non-residents may be entitled to the AEA if they are nationals of an EEA state or if they qualify under a double taxation agreement. HMRC’s online system will ask about your residency and nationality to determine eligibility. For 2025/26, the AEA is £3,000.
Further Reading
- Non-Resident CGT on UK Property — detailed rules for non-resident property disposals
- 60-Day Property Return (Step-by-Step) — how to file the 60-day return
- CGT Rates (2025/26) — full rate tables for all taxpayers
- CGT When You Sell a Rental Property — calculating the gain on a UK property sale
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