UK Capital Gains Tax for Non-Residents 2026 -- Property, Shares and Reporting

Last reviewed: 26 April 2026

UK capital gains tax for non-residents is primarily concerned with UK land and property; the general rule for non-UK-residents is that they are not subject to UK CGT on non-UK-source assets (shares, foreign property, overseas investments). However, UK residential property gains have been in scope for NRCGT since 6 April 2015 (Finance Act 2015, s.37); UK commercial property and land gains since 6 April 2019 (Finance Act 2019, Schedule 1); and UK-incorporated unlisted companies that are "property-rich" (75% or more of their value derived from UK land) since the same date. For the UK tax residency rules that determine non-UK-residency for CGT purposes, see our UK tax residency guide. For UK property investment by non-residents, see our UK expat property guide.

A significant Autumn Budget 2025 change relevant to UK capital gains tax non-resident analysis: property rental income from UK residential property is now taxed at separate rates from 6 April 2026 -- 22% basic rate, 42% higher rate, and 47% additional rate -- which are higher than the standard income tax rates. These rental income rates affect non-resident landlords’ ongoing rental income but do not change the CGT rates on disposal; however, they affect the overall attractiveness of UK residential property investment for non-residents and the breakeven analysis for capital gains versus rental income optimisation. HMRC’s Capital Gains Manual (gov.uk/hmrc-internal-manuals/capital-gains-manual) and the NRCGT guidance at gov.uk/capital-gains-tax/non-residents-property are the primary references.

NRCGT on UK residential property: rates and base date

Non-resident CGT (NRCGT) on UK residential property has applied since 6 April 2015 under Finance Act 2015 (now incorporated into TCGA 1992 s.1C-1E). The CGT rates for residential property gains for non-residents in 2025/26 (per HMRC gov.uk/capital-gains-tax/rates): 18% for gains within the basic rate band; 24% for gains above the basic rate band (higher and additional rate). The "basic rate band" for CGT purposes is determined by the individual’s UK income in the same tax year; a non-resident with minimal UK income (no salary, no UK rental income, only the UK personal allowance if entitled) pays 18% NRCGT on UK residential property gains up to the remaining basic rate band (approximately £37,700 above the personal allowance for 2025/26). The gain is calculated from 6 April 2015 as the base date for properties owned before that date (using market value at 5 April 2015 as the base cost); for properties acquired after 5 April 2015, the actual acquisition cost is used. The annual CGT exempt amount (£3,000 for 2025/26 per HMRC gov.uk/capital-gains-tax) is available to non-resident individuals making UK property disposals in that tax year.

60-day NRCGT reporting requirement

Non-UK-resident sellers of UK residential property must report the gain and pay any NRCGT due within 60 days of the completion date, using HMRC’s UK Property Reporting Service (available online at gov.uk/report-and-pay-your-capital-gains-tax). This 60-day reporting obligation (introduced from 27 October 2021, replacing the prior 30-day window) applies even where no tax is due (for example, where the gain is entirely covered by Private Residence Relief or the annual exempt amount). The report must include: the property address and completion date; the gain calculation; any reliefs claimed; and the CGT due. HMRC issues an NRCGT return reference number on registration; the CGT payment is made via HMRC’s payment portal using this reference. Failure to report within 60 days triggers a £100 automatic late filing penalty; further daily penalties of £10 per day apply after 6 months. The penalty regime (HMRC’s online Return for Capital Gains on UK Property, SA108 equivalent) is confirmed in HMRC’s NRCGT guidance at gov.uk/capital-gains-tax/non-residents-property. Where the non-resident seller already files a UK Self Assessment return (e.g., as a non-resident landlord with SA105), the NRCGT can also be included in the annual SA108 return -- but the 60-day interim report is still required separately.

Private Residence Relief for non-residents

Private Residence Relief (PRR) is available for NRCGT on UK residential property that was the seller’s only or main UK residence during the ownership period. PRR exempts gains attributable to the period of occupation as a main residence, plus the final 9 months of ownership (down from the former 36 months). For a non-resident who owned a UK home (their main residence) before moving abroad and then sold it: PRR applies to the period of UK occupation plus the final 9 months; gains attributable to the non-resident period (minus the final 9 months) are taxable as NRCGT. From 6 April 2020, non-residents can elect for a UK property to qualify as their main residence for PRR purposes only where they (or their spouse) spend at least 90 nights in that property in the relevant tax year; this "90-night test" prevents non-residents from claiming PRR for properties they barely occupy while abroad. HMRC’s Capital Gains Manual CG64300 series covers PRR for non-residents; HMRC’s CG74500 series covers the 90-night rule. Lettings Relief (which formerly applied on top of PRR for let periods) was restricted from April 2020 to situations where the owner and tenant shared occupation; it is not available to non-resident landlords who rent out the property while abroad.

UK commercial property and property-rich companies

From 6 April 2019 (Finance Act 2019), NRCGT was extended from residential property to UK commercial property (offices, retail, industrial premises) and to indirect disposals of UK land via "property-rich" entities. A non-UK-resident person disposing of shares in a UK-incorporated or foreign-incorporated company is within NRCGT if: the company derives 75% or more of its gross asset value from UK land; and the seller holds (or has held within the prior 2 years) at least 25% of the company. These rules are designed to prevent avoidance of NRCGT via offshore holding company structures. The CGT rates for non-residential UK property gains and property-rich company shares in 2025/26 are: 18% (basic rate) and 24% (higher rate), the same as for residential property. HMRC’s Capital Gains Manual CG73900 series covers the non-resident rules for commercial property and indirect disposals; the rules apply to all non-UK-resident individuals and companies regardless of nationality. HMRC’s SA108 (Capital Gains Summary) is used for annual Self Assessment reporting of NRCGT; the 60-day interim report is also required for UK property (residential and commercial) disposals within 60 days of completion.

UK listed shares: generally outside NRCGT scope

UK-listed shares (on the London Stock Exchange, AIM, or other UK-regulated markets) held by non-UK-residents are generally outside the scope of UK CGT under the general non-residence exemption. TCGA 1992 s.1A provides that non-UK-resident individuals are not subject to UK CGT on the disposal of assets other than UK land (and property-rich companies from April 2019). Pre-April 2019 holdings of UK-listed shares are therefore outside NRCGT for non-residents; post-April 2019 holdings in property-rich listed companies may be within scope if the 75% land value test and 25% holding test are met. Non-UK-resident individuals who become UK-resident after a period abroad must carry out a "re-basing" for CGT purposes: assets held before becoming UK-resident again are typically re-based to market value at the date of return to UK-residency (under the TCGA 1992 temporary non-residence rules), provided the non-residence period was at least 5 complete tax years; otherwise the original acquisition cost is used. HMRC’s Capital Gains Manual CG26100 series covers the temporary non-residence rules; the 5-year rule is a critical threshold for non-resident investors holding UK shares who return to the UK. Advice from a UK tax adviser is essential for returning expats with significant unrealised gains on UK share portfolios.

NRCGT and the Self Assessment annual return

Non-UK-residents who have made UK property disposals in a tax year must report the annual CGT position on their UK Self Assessment return (SA108, Capital Gains Summary). Even where a 60-day NRCGT return has been filed for the UK property disposal, the same gains must be included on the annual SA108 as part of the full-year tax computation. The annual return allows reconciliation of: the 60-day interim NRCGT payment against the final annual tax liability; any applicable reliefs not captured in the 60-day interim return (PRR, annual exempt amount, losses from other UK CGT disposals); and the correct application of CGT rates based on the individual’s total UK income in the tax year. HMRC’s SA108 Notes (gov.uk/government/publications/self-assessment-capital-gains-summary-sa108) explain the completion instructions for non-residents; HMRC’s NRCGT guidance at gov.uk/capital-gains-tax/non-residents-property confirms the reporting obligations. Non-residents with only UK property gains (no other UK income) may use the standalone UK Property Reporting Service without requiring a full SA return; those with other UK income (rental, pension) must include the CGT in their full SA return for the year.

Property income tax rates from April 2026: separate from CGT

A key Autumn Budget 2025 change (per the OOTLAR at gov.uk) that affects non-resident UK property owners: UK residential rental income is now taxed at separate rates from 6 April 2026 -- 22% basic rate, 42% higher rate, and 47% additional rate. These separate rental income rates apply to the ongoing rental income from UK property but do not change the NRCGT rates on disposal (which remain 18%/24%). For non-resident landlords who both receive rental income and ultimately sell the property, the separate rates from April 2026 increase the tax cost of holding UK residential property compared to prior years. The Non-Resident Landlord Scheme (NRLS) withholding rate aligns to the new 22% basic rental rate from 6 April 2026 per HMRC’s NRLS guidance; non-resident landlords with letting agents will see the withholding rate increase from 20% to 22% from that date. The interaction between the higher rental income rates and the CGT calculation is indirect: higher rental income in the year of disposal increases the seller’s UK income, potentially pushing more of the CGT gain into the 24% band rather than the 18% band.

This article is for general information only and does not constitute tax, legal, financial or immigration advice. Rules and rates change; verify with the primary sources cited or consult a qualified adviser before acting.

FAQ

What CGT rate do non-residents pay on UK property gains?

Non-residents pay 18% CGT on UK residential property gains within the basic rate band and 24% on gains above the basic rate band for 2025/26 per HMRC’s published CGT rates (gov.uk/capital-gains-tax/rates). The same 18%/24% rates apply to UK commercial property gains (in scope from April 2019) and indirect disposals of UK land via property-rich companies. The annual CGT exempt amount is £3,000 for 2025/26. These are the same rates as for UK-resident property investors; no special non-resident rate applies.

When must I report a UK property sale as a non-resident?

Within 60 days of the completion date, using HMRC’s UK Property Reporting Service (gov.uk/report-and-pay-your-capital-gains-tax). This 60-day reporting obligation applies even where no CGT is due (e.g., fully covered by PRR or the annual exempt amount). The penalty for late reporting is £100 automatically, plus £10 per day after 6 months. The 60-day interim report does not replace the annual Self Assessment SA108 requirement where the seller files a UK return for other reasons.

Can I claim Private Residence Relief on my UK home after moving abroad?

Yes, for the period you occupied the property as your main UK residence, plus the final 9 months of ownership. From April 2020, non-residents must spend at least 90 nights in the UK property in the relevant tax year for it to qualify as a main residence for PRR purposes. Lettings Relief is not available for non-resident landlords who rent the property while abroad (restricted to shared-occupation situations from April 2020 per HMRC Capital Gains Manual CG74500).

Are UK listed shares subject to CGT for non-residents?

Generally no. Non-UK-resident individuals are exempt from UK CGT on UK-listed shares under TCGA 1992 s.1A (general non-residence exemption). The exception is shares in "property-rich" companies (75%+ UK land value) where the seller holds 25%+ of the company; these have been within NRCGT scope from April 2019. Pre-April 2019 holdings in such companies may be re-based to April 2019 market value for NRCGT purposes. Non-UK-listed (private) UK company shares are also generally outside NRCGT for non-residents unless the property-rich rules apply.

How do the new rental income rates from April 2026 affect non-resident landlords?

From 6 April 2026 (Autumn Budget 2025 OOTLAR), UK residential rental income is taxed at 22% basic rate, 42% higher rate, and 47% additional rate -- separate from and higher than standard income tax rates. The NRLS withholding rate aligns to 22% basic from the same date. These rates apply to ongoing rental income; CGT rates on disposal (18%/24%) are unchanged. Higher rental income in the disposal year may push more of the CGT gain into the 24% band. Confirm the current NRLS rate at gov.uk/guidance/rental-income-non-resident-landlords.

What is the 5-year rule for returning expats with UK shares?

Non-UK-resident individuals who return to the UK benefit from TCGA 1992 temporary non-residence rules: if the non-residence period was at least 5 complete tax years, assets acquired during the non-residence period (including UK shares acquired while abroad) are re-based to market value at the date of return for CGT purposes -- so no UK CGT applies to gains that accrued while non-resident. If the non-residence period was fewer than 5 complete tax years, gains that accrued during the non-residence period are subject to UK CGT on return. HMRC’s Capital Gains Manual CG26100 covers the temporary non-residence rules.

Sources

1. HMRC -- NRCGT guidance for non-residents on UK property (verified 26 April 2026)
2. HMRC -- Capital Gains Manual (CG64300 PRR; CG26100 temporary non-residence) (verified 26 April 2026)
3. HMRC -- CGT rates 2025/26 (18% basic, 24% higher) (verified 26 April 2026)
4. HMRC -- UK Property Reporting Service (60-day NRCGT report) (verified 26 April 2026)
5. GOV.UK -- Autumn Budget 2025 OOTLAR (rental income separate rates from 6 April 2026) (verified 26 April 2026)