Capital Gains Tax for Non-Residents: Selling UK Property Rules

If you are a non-UK resident and own property in the UK, you are subject to the UK tax system on any capital gains you make when you sell or dispose of that property. HMRC enforces strict Non-Resident Capital Gains Tax (NRCGT) guidelines to ensure non-residents pay tax on UK real estate growth. Fortunately, the rules allow for “rebasing,” meaning you are generally only taxed on the growth that has occurred since April 2015 for residential properties. In this comprehensive guide, we explain the NRCGT rates, detail the rebasing options, outline the strict 60-day reporting rules, and walk through a step-by-step calculation.

1. NRCGT Tax Rates on UK Property (2026/27)

Non-residents are taxed at the same residential property CGT rates as UK residents. Your rate is determined by adding the UK property gain to any other UK-sourced income (such as UK rental profits):

• Basic Rate Band (Income up to £50,270): You pay **18%** CGT on gains that fall within the basic rate band.
• Higher & Additional Rate Bands (Income over £50,270): You pay **24%** CGT on any gains that fall above the basic rate threshold.

To calculate your property CGT liabilities and test different rebasing methods, use our interactive Property Capital Gains Tax Calculator.

2. Rebasing Rules: Only Taxed Since April 2015

To avoid retrospectively taxing non-residents on long-term property growth, HMRC introduced rebasing. Under **NRCGT rebasing rules**, the default cost basis for non-residents is the **Open Market Value of the property on April 5, 2015**:

• Any growth that occurred before April 5, 2015, is completely tax-free.
• You only pay UK Capital Gains Tax on the increase in value between April 5, 2015, and your eventual sale date.

Alternative Calculation Methods: If the default rebasing method is unfavorable (e.g. if the property lost value after 2015), you can elect to use:

• **Straight-line apportionment:** Calculate the total gain over the entire period of ownership and apportion it daily, paying tax only on the days after April 5, 2015.
• **Retrospective method:** Calculate the gain based on the original purchase cost, ignoring 2015 rebasing entirely.

3. Step-by-Step Mathematical Example: Non-Resident Sale

Let’s calculate the UK CGT liability for a non-resident who purchased a London apartment in 2010 for **£300,000**. They sell the apartment in the 2026/27 tax year for **£450,000**. The open market value of the apartment on April 5, 2015, was **£380,000**:

Step 1: Calculate the Taxable Gain using Rebasing (Default)

• Sale Proceeds: £450,000
• Rebased Cost Basis (April 2015 value): £380,000
• Gross Taxable Gain: £450,000 − £380,000 = £70,000 (The £80,000 growth before 2015 is ignored).

Step 2: Deduct Selling Expenses

• Selling solicitor and agent fees: £5,000
• Net Taxable Gain: £70,000 − £5,000 = £65,000

Step 3: Deduct the CGT Allowance and Compute Tax

Non-residents are entitled to the same **£3,000** annual exempt amount as UK residents:

• Taxable Gain: £65,000 − £3,000 = £62,000
• Assuming the non-resident has no other UK income, the first £37,700 of the gain is taxed at the basic rate (18%) and the remaining £24,300 is taxed at the higher rate (24%):
  • Basic Rate Tax: £37,700 × 18% = £6,786.00
  • Higher Rate Tax: £24,300 × 24% = £5,832.00
  • Total Tax Due: £6,786.00 + £5,832.00 = £12,618.00

4. The Critical 60-Day Notification Deadline

Non-residents must submit a **Non-Resident Capital Gains Tax return** online and pay any tax due within **60 days of completion** of the property sale.

Crucial Rule: You must file this return **even if you have no tax to pay** (e.g. if you made a loss or the gain is within your £3,000 allowance). Failing to notify HMRC within 60 days triggers an automatic £100 late-filing penalty, which escalates if the return is delayed past 3 months.

5. Frequently Asked Questions

Do non-residents pay CGT when selling UK property?

Yes. Non-residents must pay Capital Gains Tax on any profit made when disposing of UK residential or commercial property.

What is April 2015 rebasing?

Rebasing means your property’s cost basis is reset to its Open Market Value on April 5, 2015. You are only taxed on the gain that has accumulated after this date.

What is the filing deadline for non-residents?

You must file your NRCGT return and pay any tax due within 60 days of the completion date of the property sale.

Do I have to file a return if I made a loss?

Yes. Non-residents must file a return for all UK property disposals, even if the transaction resulted in a loss or there is no tax to pay.

Can non-residents claim Private Residence Relief (PRR)?

Yes, but you must meet strict occupancy rules. To count a UK property as your main home for a tax year while being a non-resident, you or your partner must have spent at least 90 nights in that property during the tax year.

Do non-residents get the £3,000 CGT allowance?

Yes. Non-residents receive the same £3,000 annual exempt amount as UK residents to reduce their taxable gains.

Are commercial properties subject to non-resident CGT?

Yes. However, the rebasing date for UK commercial properties or indirect property disposals (like selling shares in a property company) is **April 5, 2019**, rather than April 5, 2015.

Can I offset overseas losses against UK property gains?

No. Non-residents cannot offset capital losses made on non-UK assets against their UK property gains.

Statutory & Legislative References

• Taxation of Chargeable Gains Act 1992 – Schedule 1B: Special rules detailing Capital Gains Tax rules for non-resident property disposals.
• Finance Act 2019: Enacted the expansion of NRCGT to cover all UK commercial property and indirect property company disposals.
• HMRC Non-Resident Capital Gains (NRCG) portal guidelines: Details on submitting online returns and paying within 60 days.