Do non-residents pay capital gains tax on UK property?

Full answer

Non-resident Capital Gains Tax (NRCGT) means individuals, trustees and companies who are not UK tax resident still pay UK CGT when they dispose of UK land and property. The rules expanded in stages: from 6 April 2015 residential property was caught, and from 6 April 2019 it extended to all UK land, including commercial property, and to 'indirect' disposals - selling shares in a company that derives at least 75% of its value from UK land, where you hold (or have held in the prior two years) a 25%+ interest. For 2026/27, individuals pay 18% on residential gains falling within the unused basic-rate band and 24% above it. The Annual Exempt Amount of GBP 3,000 still applies to non-resident individuals. A key relief is rebasing: for residential property held before April 2015 you normally only pay on the gain since 5 April 2015, not the whole period of ownership. Other rebasing dates apply to commercial and indirect disposals. The critical compliance point is the deadline. A non-resident must file an NRCGT/CGT-on-property return and pay any tax due within 60 days of completion. This applies even if there is no tax to pay or the property is sold at a loss - the reporting obligation still stands, and penalties accrue for late filing. Worked sketch: a non-resident sells a UK rental flat bought in 2018 for GBP 200,000, now sold for GBP 260,000, with GBP 5,000 of costs. The gain is GBP 55,000; after the GBP 3,000 exemption, GBP 52,000 is taxable, charged at 18%/24% depending on UK-source income using the band. Principal Private Residence relief can apply only if strict day-count occupancy conditions are met. Use the capital gains tax calculator to estimate the liability, then confirm rebasing and reporting with gov.uk or an adviser.

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