Capital Gains Tax for Non-Residents Selling UK Property
If you have sold UK property while living abroad, you are still required to file a CGT for non-residents return—even if you do not usually file a UK tax return or no gain arises. A return is mandatory, and the penalties for missing the 60-day deadline can be significant.
Many sellers are unaware of this obligation—especially if they do not usually file a UK tax return or do not expect to owe tax. But missing the deadline can result in substantial penalties, even where no gain arises.
At Tax Innovations, we provide clear, expert support to non-residents navigating the CGT process, from gain calculations to full reporting.
Do non-residents need to report UK property sales for CGT?
Yes. Since 6 April 2020, non-residents must report and pay CGT on most disposals of UK property or land, including residential and commercial assets. This applies even if there is no UK tax otherwise due, and even if the individual is not required to submit a UK Self Assessment tax return.
The 60-day deadline: what you need to know
The CGT return must be filed and any tax due paid within 60 days of completion of the sale. Missing this deadline can result in automatic late-filing penalties and interest charges.
What counts as a taxable disposal?
Non-residents must report and potentially pay CGT when they dispose of:
- UK residential property
- UK commercial property
- Indirect interests (e.g. shares in property-rich companies)
This applies whether the asset is held personally or via a trust or company structure, and regardless of whether it is let or owner-occupied.
How non-residents calculate CGT
Tax is generally charged on gains made since 6 April 2015 for residential property or 6 April 2019 for commercial property. Non-residents can choose to rebase the property value to these dates or use original cost figures where applicable.
Allowable costs (such as legal fees and improvements) and any available reliefs (e.g. private residence relief or annual exemption) can be deducted when calculating the gain.
What happens if you miss the deadline?
HMRC imposes automatic penalties for late CGT returns, starting at £100 and increasing with continued delay. Interest is also charged on late payments. In some cases, late compliance can flag individuals for wider enquiry by HMRC, particularly where UK assets are held by overseas individuals or entities.
How we help with your CGT return
Our team provides a comprehensive service to ensure that your Capital Gains Tax obligations are met in full and on time:
- Confirming whether a CGT return is required
- Calculating the capital gain, including rebasing options
- Advising on reliefs and exemptions
- Preparing and submitting the online CGT return
- Coordinating payment and follow-up with HMRC
We are highly experienced in acting for non-resident individuals and families with UK property interests. You will be advised by senior professionals who understand the nuances of international tax compliance and can guide you through the process with clarity and precision.
FAQs
Do non-residents pay CGT on UK property?
Yes. Non-residents are subject to Capital Gains Tax when they dispose of UK residential or commercial property, regardless of their UK tax filing obligations.
When is the CGT return due for non-residents?
The CGT return must be submitted and any tax paid within 60 days of the date of completion of the property sale.
Can I use the 2015 or 2019 rebasing rules?
Yes. Non-residents can elect to rebase the value of the property to 6 April 2015 (for residential) or 6 April 2019 (for commercial) when calculating their gain.
What if I miss the CGT deadline?
Missing the deadline results in automatic late-filing penalties and interest on late payment. Persistent non-compliance may also increase the risk of HMRC scrutiny.
Do I need a UK tax reference or UTR to file a CGT return?
No. You can create a Capital Gains Tax on UK Property account with HMRC even if you do not have a UTR or file a UK tax return. We can assist with this setup.
Can my solicitor file the CGT return for me?
Not usually. Most solicitors are not registered as CGT agents and cannot file the return on your behalf. We act as your authorised agent and manage the full process.
Please call us on 01962 856 990 or visit our contact page.