UK Capital Gains Tax for Non-Residents: A Complete Guide

Leaving the UK does not automatically end your exposure to UK capital gains tax (CGT). For internationally mobile investors and expatriates, understanding exactly when and how CGT applies to UK assets is essential — and the rules have tightened considerably over the past decade. This guide sets out the current framework as of 2026, with particular focus on property, shares, and the planning steps available to non-residents.

The General Position: CGT and Non-Residence

Historically, non-UK residents could sell UK assets — including shares and most investments — free of UK CGT. That broadly favourable position has been progressively eroded. Today, the key distinctions are:

• UK residential property: always within scope for non-residents since April 2015.
• UK commercial property and land: brought into scope for non-residents from April 2019.
• UK shares in property-rich companies: also within scope from April 2019.
• Other UK assets (shares, funds, etc.): generally outside UK CGT for non-residents, subject to the temporary non-residence anti-avoidance rules.

Understanding which category your assets fall into — and which rules apply — is the first step in any planning exercise. Tax rules are complex and your individual circumstances will determine the outcome; professional advice is essential.

Non-Resident CGT on UK Property

Residential Property

Since 6 April 2015, non-resident individuals, companies, and trusts disposing of UK residential property have been liable to Non-Resident Capital Gains Tax (NRCGT). The charge applies to any gain accruing on or after that date; earlier gains are generally rebased to April 2015 values.

Non-residents pay CGT on UK residential property at the same rates as UK residents: 18% (basic rate) or 24% (higher/additional rate) as of 2026. Rates have changed multiple times in recent years, so always verify current rates before any disposal. Non-residents do retain access to the annual CGT exempt amount, though that annual exemption has been substantially reduced in recent years and now stands at just £3,000 per person for 2024/25 onwards.

Commercial Property and Land

From April 2019, the NRCGT regime was extended to UK commercial property, agricultural land, and other UK land. Offshore structures holding UK property are also within scope. Gains are computed on the market value at 5 April 2019 (rebasing), with an election available to use actual historic cost if that produces a smaller gain.

Property-Rich Companies

Where a non-resident entity disposes of shares in a company (or interests in a partnership) that is "property-rich" — broadly, where 75% or more of the gross asset value derives from UK land — the disposal is also within scope of NRCGT. This catches many offshore holding structures that were previously used to hold UK investment property.

The 30-Day (Now 60-Day) Reporting Requirement

A critically important obligation for non-residents is the requirement to report UK property disposals to HMRC and make a payment on account within 60 days of completion. This applies even if no gain arises, and even if the disposal results in a loss. Failure to file within 60 days attracts automatic penalties regardless of whether tax is owed.

This requirement catches many non-residents by surprise. Completion and exchange of contracts are different events — the 60-day clock runs from legal completion, not exchange. Professional support to manage the reporting deadline is strongly advisable.

Temporary Non-Residence Rules

The temporary non-residence rules are an important anti-avoidance provision that applies to assets other than UK land. If an individual has been UK resident for at least four of the seven tax years before departure, and returns to UK tax residence within five years of leaving, any gains realised on non-UK-land assets during the period of non-residence will be taxed in the year of return.

In practical terms, this means:

• Gains on UK shares, overseas property, and other non-land assets realised while abroad may still be taxable if you return to the UK within five years.
• The five-year window applies to full tax years of non-residence; the count begins from the tax year after departure.
• Careful planning before departure — and consideration of whether return within five years is likely — is essential.

The temporary non-residence rules do not apply to UK land: UK land gains are taxable whether or not you ever return.

Non-Residents and UK Shares

Outside the temporary non-residence rules and the property-rich company rules, non-UK residents are generally not liable to UK CGT on disposals of UK-listed shares, unit trusts, OEICs, or similar investments. This remains a significant planning opportunity for internationally mobile investors who hold significant UK share portfolios.

However, investors should be alert to:

• Treaty provisions: Some double tax treaties may modify the position, either restricting UK taxing rights or (in rare cases) preserving them.
• Tax residency in the new jurisdiction: Gains on UK shares may be fully taxable in the country where you are tax resident. It is not a question of UK CGT alone.
• Temporary non-residence: As above, gains realised within five years of departure remain at risk if you return.

Rates of UK CGT for Non-Residents

As of the 2026/27 tax year, UK CGT rates applicable to non-residents on UK property are as follows:

• Residential property: 18% (basic rate band) or 24% (higher/additional rate)
• Commercial property and land: 18% (basic rate band) or 24% (higher/additional rate)

Since 30 October 2024, the 18%/24% rates apply to gains on both residential and non-residential assets — the previously lower 10%/20% rates for non-residential property no longer apply. These rates have been subject to change in recent Budgets. Non-residents who pay no UK income tax may find that the full gain is charged at the lower rate if it falls within the basic rate band after applying the personal allowance and annual CGT exemption — but since the personal allowance is not available to many non-residents (particularly from 2016 onwards for some treaty situations), this must be checked carefully.

Double Tax Treaties

The UK has an extensive network of double tax treaties. Most treaties allocate taxing rights over gains on immovable property (land and buildings) to the country where the property is situated — meaning UK property will generally be taxable in the UK regardless of where the seller is resident.

For shares and other movable property, many treaties give exclusive taxing rights to the country of residence of the seller. This can be beneficial: a resident of a country with a favourable CGT regime (or no CGT at all) may legitimately pay no tax on UK share gains in either jurisdiction. Professional advice is required to interpret any specific treaty position.

Planning Considerations for Non-Residents

Timing of Disposals

For UK land, gains accrue throughout ownership, but the UK CGT charge only applies to post-April 2015 (residential) or post-April 2019 (commercial) gains. Where a property has been owned for many years, the rebased gain may be significantly smaller than the total economic gain. Understanding the rebased position before proceeding is essential.

Use of the Annual Exempt Amount

Non-residents retain access to the annual CGT exempt amount (£3,000 as of 2026). For spouses or civil partners who jointly own UK property, both may be entitled to the exemption, potentially sheltering £6,000 of gain. More complex arrangements, such as equalising ownership between spouses before disposal, may be appropriate — but any restructuring of ownership itself triggers CGT consideration.

Principal Private Residence Relief

Non-residents may still be able to claim Principal Private Residence (PPR) relief on a UK home, but the rules are restrictive. Since April 2015, a non-resident can only claim PPR for tax years in which they (or their spouse or civil partner) spent at least 90 days in the property. This is a high bar that most non-residents will not meet consistently. For former UK homeowners who have moved abroad, PPR may protect gains accrued before departure but is unlikely to cover the full gain where the property has continued to appreciate.

Lettings Relief

Lettings relief — previously a valuable exemption for landlords who had at some point lived in their property — was substantially curtailed in 2020. It is now only available where the owner is in shared occupancy with a tenant, which limits its relevance for most non-resident landlords.

Holdover and Rollover Reliefs

Business asset rollover relief and gift holdover relief are available to non-residents in certain circumstances, particularly in relation to UK business assets. These can be useful for non-resident entrepreneurs who hold UK trading assets, but the conditions are specific and must be reviewed on a case-by-case basis.

Losses

Non-residents who incur losses on UK land disposals may offset these against UK land gains in the same or future years. Losses on non-UK-land assets realised while non-resident generally cannot be used against UK land gains — though this is a complex area with nuances depending on treaty position and whether temporary non-residence rules apply.

Structuring UK Property Ownership

The decision whether to hold UK property personally, through a UK company, an offshore company, or a trust involves a trade-off between income tax, CGT, inheritance tax, and stamp duty land tax. Historically, offshore company ownership was a common strategy for non-residents; the extension of NRCGT to property-rich companies has reduced (though not eliminated) its CGT advantage. Annual Tax on Enveloped Dwellings (ATED) also applies to residential properties worth over £500,000 held in companies.

Any restructuring of existing ownership — for example, "de-enveloping" a property from a company — will itself trigger a disposal for CGT and SDLT purposes and requires careful analysis. The right holding structure depends on the specific facts, the client's broader tax position, and the intended holding period.

Compliance and HMRC

HMRC has increased its focus on non-resident CGT compliance significantly in recent years. Data-sharing under the Common Reporting Standard (CRS) means HMRC receives information about UK nationals' overseas accounts and assets from over 100 jurisdictions. Property transaction data is captured through SDLT returns and Land Registry records. Failure to meet reporting obligations carries automatic penalties, and deliberate evasion carries criminal sanctions.

Non-residents disposing of UK property should ensure they:

• Are registered for Self Assessment if required.
• File the 60-day property disposal return on time.
• Keep accurate records of acquisition costs, improvement expenditure, and disposal proceeds.
• Obtain a market value report if needed (for rebasing or PPR calculations).

How Global Investments Can Help

UK CGT for non-residents is a technically demanding area where mistakes are costly and filing obligations are strict. At Global Investments, we work with internationally mobile clients to:

• Assess the CGT position on UK assets before any disposal takes place.
• Identify the rebased gain and apply all available reliefs accurately.
• Manage the 60-day reporting obligation and ensure no penalties are incurred.
• Co-ordinate with local tax advisers in your country of residence to avoid double taxation.
• Review holding structures and recommend adjustments where appropriate.
• Integrate CGT planning with your broader estate, income tax, and wealth management strategy.

If you are a non-resident with UK assets — whether property, shares, or business interests — and would like to understand your position, contact us to arrange a review with our specialist tax planning team. Tax rules change; the information in this guide reflects the position as of 2026 and you should seek personalised professional advice before making any decisions.