Last reviewed: 30 April 2026 | Sources: HMRC GOV.UK — Non-resident CGT, Finance Act 2021 (60-day rule), HMRC CGT rates 2025/26
TL;DR — Quick Summary
Non-UK residents who sell UK property must report the disposal to HMRC within 60 days of completion and pay any CGT due by the same deadline — even if the gain is zero or a loss. This applies to residential and commercial UK property sold on or after 27 October 2021. CGT rates for residential property are 18% (basic rate) and 24% (higher rate) in 2025/26. Properties purchased before 6 April 2015 are rebased to their April 2015 market value — only post-April 2015 gains are taxed.
Key Facts
- 60-day deadline: report AND pay CGT within 60 days of completion date (not exchange date)
- Applies to: all UK land and property disposals by non-residents, including commercial property and bare land
- Must report even if: no gain arises, a loss arises, or the gain falls within the annual exempt amount
- Annual CGT exempt amount 2025/26: £3,000 per person
- CGT rates on residential property 2025/26: 18% basic rate, 24% higher rate
- Rebasing: properties owned before 6 April 2015 — only gains since April 2015 are taxable
- Report via: HMRC's Capital Gains Tax on UK property service (gov.uk)
- Source: HMRC GOV.UK — Capital Gains Tax for non-residents: UK residential property
Why non-residents pay CGT on UK property
Before 6 April 2015, non-UK residents were generally exempt from UK Capital Gains Tax on property disposals. The government introduced Non-Resident CGT (NRCGT) on UK residential property from April 2015, extended to all UK land and property (including commercial) from April 2019. This means any non-resident individual, company, trust or fund that sells UK property since April 2015 (residential) or April 2019 (commercial) is potentially liable to UK CGT.
The 60-day reporting obligation
The 60-day rule was introduced by the Finance Act 2021 for completions on or after 27 October 2021 (increased from the original 30-day window). The 60-day clock starts from the completion date — not the exchange date. For a standard UK residential sale, exchange and completion may be several weeks apart. The CGT obligation arises on completion.
Crucially, non-residents must report all UK property disposals within 60 days — including those with no gain, those with a loss, and those where the gain falls within the £3,000 annual exempt amount. UK residents only need to report within 60 days when there is actual tax to pay. This distinction catches many non-resident sellers who assume a loss or zero gain means no reporting obligation.
Report online using HMRC's Capital Gains Tax on UK property service at gov.uk. You will need a Government Gateway account. HMRC provides a 14-digit payment reference after you report — use this to pay any tax due.
CGT rates for non-residents 2025/26
| Asset type | Basic rate taxpayer | Higher rate taxpayer |
|---|---|---|
| UK residential property | 18% | 24% |
| UK commercial property / land | 18% | 24% |
| Business Asset Disposal Relief (where applicable) | 10% (lifetime limit £1m; rate rising to 14% from April 2026) | |
Your rate depends on your total UK taxable income in the tax year. As a non-resident, your UK income is typically lower than a UK resident's — if your UK income is below the basic rate band (£37,700 above the Personal Allowance in 2025/26), the 18% rate applies to at least some of your gain. The gain is added on top of your UK income to determine the rate.
Rebasing: properties owned before April 2015
If you owned UK residential property before 6 April 2015, only the portion of the gain accruing since that date is subject to NRCGT. HMRC allows three methods for calculating the taxable gain:
- Rebasing: Use the property's market value on 5 April 2015 as your acquisition cost. The taxable gain is the difference between the April 2015 value and your eventual sale price, less allowable costs since 2015.
- Time apportionment: Calculate the total gain over the entire ownership period, then apportion the fraction attributable to the post-April 2015 period.
- Whole period gain: Elect to use the actual total gain from original acquisition to sale date (this is usually only beneficial if it produces a smaller gain than rebasing).
For most properties that have risen significantly in value since 2015, rebasing produces the smallest taxable gain. A professional RICS-accredited surveyor's valuation as at 5 April 2015 is strongly recommended for high-value properties — HMRC may challenge an unsupported estimate.
Private Residence Relief for non-residents
If the UK property was your main residence for part of the ownership period, Private Residence Relief (PRR) may reduce or eliminate the CGT charge. The proportion of the gain exempt under PRR is calculated as the number of months the property was your main residence (plus the final 9 months of ownership) divided by total ownership months. For non-residents who lived in the UK property before moving abroad, the pre-departure period of main residence qualifies for relief, subject to the non-resident rules which required you to spend at least 90 days in the property during any tax year in which you claim non-resident PRR.
Step-by-step: how to report and pay
- Establish your completion date — this starts the 60-day clock
- Calculate your gain: sale proceeds minus acquisition cost (or April 2015 value) minus allowable costs (improvements, legal fees, SDLT, estate agent fees)
- Deduct your annual exempt amount (£3,000 in 2025/26) if not already used against other gains
- Determine your CGT rate based on total UK taxable income
- Report online at gov.uk using the Capital Gains Tax on UK property service
- Pay using the 14-digit reference within the 60-day window
- Report again on your Self Assessment return if you file one — the 60-day report does not remove the Self Assessment obligation
Penalties for late reporting
| Delay | Penalty |
|---|---|
| Up to 6 months late | £100 fixed penalty |
| 6–12 months late | Additional £300 or 5% of tax due (whichever greater) |
| Over 12 months late | Further £300 or 5% penalty; deliberate failures attract 70–100% of tax due |
| Late payment (any delay) | Interest at HMRC's late payment rate (currently 7.25% p.a.) from day 61 |
Frequently asked questions
Do I need to report if I make a loss on the sale?
Yes — non-residents must report all UK property disposals within 60 days regardless of the outcome. A loss can be used to offset other UK property gains in the same or future tax years, but it must be reported to be recognised.
What if I inherited the property?
Inherited property takes the market value at the date of death as its acquisition cost — not the original purchase price paid by the deceased. If the property has risen in value since you inherited it, you may have a CGT liability on disposal. The 60-day reporting rule applies in the same way.
Can I use a UK tax agent to file the 60-day report on my behalf?
Yes. A UK tax agent (CIOT or ATT-qualified) can file the 60-day report using HMRC's agent portal. You must authorise them using form 64-8. This is strongly recommended for complex cases involving multiple properties, rebasing valuations, PRR calculations, or where a DTA may exempt the gain.
Does a DTA exempt me from UK CGT on UK property?
Most UK DTAs give the UK primary taxing rights over gains on UK real estate, regardless of where the seller is resident. A small number of older treaties may provide relief — check the specific treaty text and contact HMRC or a specialist if you believe a DTA applies. You must still file the 60-day report even if you believe a DTA exempts you, and claim treaty relief on the return.
What is the CGT rate from April 2026?
The main CGT rates for residential property remain 18% and 24% in 2026/27. Business Asset Disposal Relief rises to 14% from April 2026 (up from 10%), with a further rise to 18% from April 2027.
Sources: HMRC — Capital Gains Tax for non-residents: UK residential property, GOV.UK | HMRC — Work out your tax if you're a non-resident selling UK property, GOV.UK | Finance Act 2021 (60-day rule) | LITRG — Non-residents and capital gains tax | ATT — CGT on UK Property Reporting Service user guide.
Informational only — not tax advice. Consult a CIOT-qualified tax adviser before selling UK property from abroad. See our UK Expat Finance hub.
