Selling UK property from overseas comes with its own set of tax rules. If you are not a UK resident, you cannot simply assume the usual CGT rules apply to you.
Non-residents can be liable for Capital Gains Tax when they sell UK property or land. The rules cover residential, commercial, and certain indirect disposals. They also apply even if you make a loss or have no tax to pay. The reporting deadline is also easy to miss. Non-residents generally have 60 days from completion to report a disposal and pay any CGT due.
TAJ Accountants works with non-resident property owners across London on CGT reporting and tax planning. This guide explains what you need to know before selling UK property in 2026.
What is Capital Gains Tax?
Selling UK property from overseas comes with its own set of tax rules. If you are not a UK resident, you cannot simply assume the usual CGT rules apply to you.
Non-residents can be liable for Capital Gains Tax when they sell UK property or land. The rules cover residential, commercial, and certain indirect disposals. They also apply even if you make a loss or have no tax to pay. The reporting deadline is also easy to miss. Non-residents generally have 60 days from completion to report a disposal and pay any CGT due.
TAJ Accountants works with non-resident property owners across London on CGT reporting and tax planning. This guide explains what you need to know before selling UK property in 2026.
Do I Need to Pay CGT on UK Property as a Non-Resident?
Yes. You have to pay UK Capital Gains Tax when you sell UK property or land, even if you are not a UK resident.
For UK residential property owned before 6 April 2015, CGT is calculated using its market value on 5 April 2015 (rebasing). Again, for non-residential property and land owned before 6 April 2019, the equivalent rebasing date is 5 April 2019.
Non-residents must report sales or disposals of UK property or land to HMRC. They have to submit the CGT return within 60 days of completion. The rules must apply even if there is no tax.
There is also a temporary non-residence rule to keep in mind. If you leave the UK and return later, you may have made certain gains while you were temporarily non-resident; the UK tax will charge you.
Non-Resident CGT Rates for 2026/27
Non-residents generally pay Capital Gains Tax on UK property at the same individual rates as UK residents. For 2026/27, the main rates are:
Asset Type | CGT Rate |
Residential property | 18% or 24% |
Commercial property and other land | 18% or 24% |
Gains qualifying for Business Asset Disposal Relief | 18% |
Trustees and personal representatives | 24% |
The rate you pay depends on your taxable income and gains. Your taxable gains are added to your taxable income to determine how much falls within the basic rate band. Any remaining gains are generally taxed at 24%.
For 2026/27, the annual CGT exempt amount is £3,000 for individuals. Non-residents who dispose of UK residential property can generally use this allowance, subject to the relevant conditions.
How Do I Report Capital Gains Tax as a Non-Resident?
If you sell UK residential property while living abroad, you usually need to report the sale within 60 days of completion. Any CGT due must also be paid within this time. You still need to report the sale if no tax is due.
Online Through HMRC’s UK Property Account
You can report the sale and pay the tax through HMRC’s online service. You will need details of the property, the purchase and sale prices, any costs and reliefs, and your residence status.
Through a UK Tax Specialist
You can also ask a UK tax adviser to deal with the calculation and reporting for you. This can be helpful if you need to consider rebasing, exchange rates, tax reliefs, or a double tax treaty.
If you file a UK Self Assessment return, you will usually need to include the property sale there as well. Reporting it through the 60-day service does not replace this requirement.
How is Capital Gains Tax Calculated?
Working out CGT starts with the difference between what you paid for the property and what you sold it for. Then subtract any applicable costs and reliefs before calculating the tax.
Step 1: Work out the purchase cost
If you bought the property before 6 April 2015, you may need to use its market value on 5 April 2015 instead of the original purchase price. This is known as rebasing. A professional valuation is useful if you need to establish this value.
Step 2: Take off the costs you can claim
Some costs can reduce the gain, including legal fees, estate agent fees, Stamp Duty Land Tax, and qualifying improvements. You can not claim normal repairs and maintenance costs.
Step 3: Check for tax reliefs
You can reduce the CGT through Private Residence Relief if you lived in the property as your main home. Also, other reliefs will be applicable depending on your usage criteria and circumstances.
Step 4: Use your annual CGT allowance
Everyone has an annual CGT exempt amount. For 2026/27, this is £3,000. If you have a gain above this amount, the allowance is taken off before CGT is calculated.
Step 5: Work out how much tax you owe
The CGT rate is normally 18% or 24%, depending on your taxable income and gains. If you are a non-resident, you also need to make sure the figures are converted into pounds sterling using the appropriate exchange rates.
Example
Kevin bought his UK property before 2015 and sells it in June 2026 for £400,000. The property was worth £ 200,000 on 5 April 2015, and he later spent £20,000 on qualifying improvements.
This leaves Kevin with a £180,000 gain. After his £3,000 annual exempt amount, £177,000 remains taxable.
If all of this falls within the 24% CGT rate, he would pay £42,480 in Capital Gains Tax.
Check Capital Gains Tax Reliefs
Several reliefs can reduce the CGT payable when selling UK property. If you are a non-resident, check which ones apply before filing your return.
Private Residence Relief
If the property was your main home at some point, Private Residence Relief may reduce the gain for the period you lived there. The final nine months of ownership can also qualify, subject to the relevant conditions.
Lettings Relief
Lettings Relief is now limited to cases where you lived in the property as your main home while letting part of it to someone else. It generally does not apply where the entire property was let while you lived elsewhere.
Rollover Relief
If you sell qualifying business assets and reinvest the proceeds in other qualifying business assets, you may be able to defer the CGT. This can apply to certain commercial properties used for business purposes, but not ordinary residential property.
Business Asset Disposal Relief
If the disposal qualifies for Business Asset Disposal Relief, qualifying gains can be taxed at 18%, subject to the £1 million lifetime limit and other conditions. This can be relevant where a non-resident disposes of qualifying UK business interests.
Capital Losses
Capital losses from other asset disposals can be used to reduce taxable gains. Unused losses can generally be carried forward to future tax years, provided they are reported to HMRCÂ within the relevant time limit.
What is Capital Gains Tax Allowance?
The Capital Gains Tax allowance, also called the Annual Exempt Amount, is the amount of overall gains you can make before CGT becomes payable.
For 2026/27, the allowance is £3,000 for individuals and £1,500 for most trustees. Only gains above the relevant allowance are subject to CGT.
If you are a non-resident selling UK property, the £3,000 allowance can reduce the gain before tax is calculated, subject to the relevant conditions. Any unused allowance cannot be carried forward to a future tax year.
You may also be able to reduce your taxable gain by using allowable losses or claiming relevant CGT reliefs.
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Capital Gains Tax exemptions
Not every gain is subject to Capital Gains Tax. Some assets and disposals are exempt, meaning you do not normally pay CGT when you sell or dispose of them.
Common examples include your main home, private cars, personal belongings worth up to £6,000, and certain shares or investments held in tax-free schemes such as ISAs. Gifts to your spouse or civil partner can also be exempt from CGT.
However, the rules depend on the asset’s type and the circumstances of the disposal. If you are a non-resident selling UK property, these exemptions do not automatically apply simply because you live overseas.
How TAJ Accountants can help
Selling a UK property from overseas can involve several tax considerations, particularly if the property has been owned for many years. Rebasing, exchange rates, available reliefs, and reporting deadlines can all affect the final CGT calculation.
Getting these details right is important, especially when the 60-day reporting deadline leaves little time to correct mistakes. TAJ Accountants can support non-resident property owners with:
- CGT calculations:Â Work out the taxable gain and include all relevant allowable costs.
- Tax reliefs: Check whether you qualify for reliefs such as Private Residence Relief or Business Asset Disposal Relief.
- Property rebasing:Â Help establish the correct value where the 2015 or 2019 rebasing rules apply.
- Currency calculations:Â Account for exchange rate movements when calculating the gain in pounds sterling.
- CGT reporting:Â Prepare and submit the required report within the 60-day deadline.
- Self Assessment:Â Make sure the disposal is included correctly in your UK tax return where required.
TAJ Accountants is a small business accountants firm supporting non-resident property owners across London. Book a free consultation to discuss your property sale and CGT position.
Frequently Asked Questions
Yes. Non-residents can be liable for UK Capital Gains Tax when they sell UK property or land. The rules apply even if you live and pay tax in another country.
You generally have 60 days from completion to report the disposal and pay any CGT due on a UK residential property. The deadline applies even if no tax is ultimately payable.
The main CGT rates are 18% and 24%. The rate depends on your taxable income and gains, as well as the type of disposal.
Generally, yes. The £3,000 annual exempt amount for 2026/27 can reduce the taxable gain on a UK property disposal, subject to the relevant conditions.
Not usually for UK residential property owned before 6 April 2015. The 5 April 2015 market value can generally be used when calculating the gain. Different rules apply to commercial property and other land, where 5 April 2019 is the relevant rebasing date.
Generally, yes. Non-residents are subject to the same main CGT rates when selling UK property, although your individual tax position determines which rate applies.
You may have to. In most cases, the property’s value when you inherited it becomes the starting point for calculating your gain. Any increase in value between the date of inheritance and the sale may be subject to CGT.
