Non-Resident CGT on UK Property

Key facts

Non-residents have been liable to CGT on UK residential property since April 2015.
From April 2019, this was extended to all UK land and property, including commercial.
Non-residents must file a 60-day return for all UK property disposals — even if no gain arises.
The default base cost is the 5 April 2015 (residential) or 5 April 2019 (non-residential) market value.
Indirect disposals — selling shares deriving 75%+ of value from UK land — are also caught.

Overview of Non-Resident CGT

Non-UK residents have been within the scope of UK CGT on property disposals since 2015. The regime was expanded in 2019:^[1]

Date	Change
6 April 2015	Non-Resident CGT introduced for UK residential property
6 April 2019	Extended to all UK land and property (including commercial) and indirect disposals

Who Is Affected?

The NRCGT regime applies to:^[2]

Non-UK resident individuals disposing of UK land and property
Non-UK resident trustees disposing of UK land and property
Non-UK resident companies — pay Corporation Tax on chargeable gains from UK property (rather than CGT)
Non-UK resident partnerships — each partner is assessed individually

Residence is determined by the Statutory Residence Test for individuals, and by the company’s central management and control or place of incorporation for companies.

Calculating the Gain

Non-residents have three options for computing the gain, but the default is the rebased value:^[2]

Method	How It Works	When to Choose
Default: Rebasing	Use market value at 5 April 2015 (residential) or 5 April 2019 (non-residential) as base cost	Applies automatically unless you elect otherwise
Straight-line time apportionment	Apportion the total gain on a time basis, taxing only the post-April 2015/2019 portion	If the property appreciated evenly over time
Original cost	Use the actual original acquisition cost	If the property has fallen in value since April 2015/2019 (to claim a bigger loss)

Tip: The election for time apportionment or original cost must be made on the CGT return. Once made, it is irrevocable for that disposal. Consider all three methods and choose the one that produces the best result.^[2]

Reporting Requirements

Non-UK residents have stricter reporting requirements than UK residents:^[3]

A 60-day CGT property return must be filed for every UK property disposal — including those resulting in a loss or no gain
The 60-day deadline runs from the completion date
The return is filed using HMRC’s “Capital Gains Tax on UK property” online service
Non-residents may need to register with HMRC and obtain a Unique Taxpayer Reference (UTR) first

Indirect Disposals

From 6 April 2019, non-residents are also liable to CGT on indirect disposals — where they sell interests in entities (companies, partnerships, trusts) that derive their value from UK land:^[4]

The entity must derive 75% or more of its gross asset value from UK land
The person must have a 25% or greater interest (at any point in the two years before disposal)
CGT is charged on the proportion of the gain attributable to UK land

CGT Rates for Non-Residents

Person	Rate (from 30 Oct 2024)
Non-resident individual (basic rate)	18%
Non-resident individual (higher rate)	24%
Non-resident trustees	24%
Non-resident companies	Corporation Tax rate (up to 25%)

Non-resident individuals may be able to claim the Annual Exempt Amount if entitled under a double taxation agreement or if they are a UK national, an EEA citizen, or a resident of certain other countries.^[1]

Double Taxation Relief

If you pay CGT in the UK and are also liable to tax on the same gain in your country of residence, double taxation relief may be available under the relevant tax treaty between the UK and that country. This normally means you receive a credit in your home country for the UK CGT paid.

Check the treaty: Not all double taxation agreements allocate exclusive taxing rights in the same way. Some allow both countries to tax the gain, with credit relief. Others give exclusive rights to the country where the property is situated (the UK). Always check the specific treaty that applies.^[1]

Frequently Asked Questions

Do non-UK residents pay CGT on UK property?

Yes. Non-UK residents pay CGT on disposals of UK residential property (from April 2015) and all UK land and property, including commercial (from April 2019). The same CGT rates of 18% and 24% apply.

Do I have to report even if I made a loss?

Yes. Non-UK residents must file a 60-day CGT property return for all UK property disposals, regardless of whether the result is a gain or a loss. This is a stricter requirement than for UK residents.

How is the gain calculated for non-residents?

You can use the market value at 5 April 2015 (residential) or 5 April 2019 (non-residential) as your base cost. Alternatively, you can elect to use the original cost or a straight-line time-apportionment. The default position is the April 2015/2019 value.

What is an indirect disposal?

An indirect disposal occurs when a non-resident sells shares (or other interests) in a company or partnership that derives 75% or more of its gross asset value from UK land. The person must hold at least a 25% interest. CGT applies to the gain as if UK property had been sold directly.

Sources

Tax when you sell property: non-resident — GOV.UK
Capital Gains Manual: CG73700 – Non-resident CGT — HMRC
Report and pay Capital Gains Tax on UK property — GOV.UK
Capital Gains Manual: CG73930 – Indirect disposals — HMRC