Answers · UK 2025/26
Do non-residents pay Capital Gains Tax on UK property?
Yes. Since April 2015 (residential) and April 2019 (commercial), non-UK residents must pay CGT on gains from UK property disposals and report within 60 days of completion. They use UK CGT rates (18%/24% for residential in 2026/27) and are entitled to the GBP 3,000 Annual Exempt Amount. Gains can be calculated from the April 2015 or 2019 rebasing date.
Full answer
Non-UK residents were brought within the scope of UK Capital Gains Tax on UK property in stages. From April 2015, non-residents pay CGT on gains from disposals of UK residential property (houses, flats, holiday lets). From April 2019, the charge was extended to non-resident gains on UK commercial property (offices, retail, industrial) and also to gains made by non-resident companies (previously only liable to ATED-CGT in some cases), non-resident collective investment vehicles, and gains on interests in 'property-rich' entities (companies deriving 75%+ of value from UK land). Tax rates for non-residents (2026/27): for residential property, 18% (basic rate) and 24% (higher/additional rate), the same as for UK residents. For commercial property: 18% and 24% (the rates were equalised with residential in the 2024 Autumn Budget). Companies pay corporation tax (19-25%) rather than CGT. Annual Exempt Amount: non-resident individuals are entitled to the standard AEA (GBP 3,000 for 2026/27). Non-resident companies, pension funds, and certain trusts may have different treatment. Rebasing: non-residents only pay tax on post-April 2015 gains (residential) or post-April 2019 gains (commercial). They can elect to use a 'retrospective' basis (total gain since original acquisition) or a 'default rebasing' basis (only the gain since the relevant April date). They can also use a time apportionment basis (the fraction of time the property was held after the charge date). Usually, rebasing to April 2015/2019 is beneficial unless the property fell in value between acquisition and the charge date. Reporting: non-residents must report the disposal to HMRC within 60 days of the completion date and pay any tax due within the same 60-day window, regardless of whether they need to file a UK Self Assessment return. This applies even if no tax is due (e.g. covered by the AEA) unless the property is a REIT or other exempt entity. Double taxation: if the non-resident also pays CGT in their country of residence, the double taxation agreement (DTA) between the UK and that country may allow credit relief for tax paid in one country against the liability in the other.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.