UK Non-Resident CGT on Property: Filing Requirements and Reliefs

One of the most significant changes to UK capital gains tax in recent years has been the progressive extension of the scope of non-resident CGT (NRCGT) to cover UK property and land. Before 2015, non-UK residents could generally dispose of UK assets — including UK property — free of UK CGT. That exemption has been progressively closed: residential property was brought into scope from April 2015, commercial property and indirect disposals from April 2019, and the return filing and payment regime has been significantly tightened. As of 2026, virtually all disposals of UK land and property by non-residents are within the scope of NRCGT, and the filing and payment rules are strict.

Who Is Subject to NRCGT?

NRCGT applies to non-UK-resident individuals, trustees, and companies that dispose of interests in UK land and property. This includes:

• Direct disposals of UK residential property
• Direct disposals of UK commercial property (from April 2019)
• Indirect disposals of UK property-rich entities — where the disposed entity derives 75% or more of its gross asset value from UK land ("property-rich" test) and the non-resident holds or has held at least a 25% interest in the entity

The NRCGT base date for individuals is 5 April 2015 for residential property (or 5 April 2019 for commercial property); gains accruing before those dates are not generally taxable (though rebasing or time-apportionment may apply).

Tax Rates for Non-Residents

For individuals, NRCGT rates mirror the standard UK CGT rates on property:

• Basic rate (where the gain falls within the basic rate band, taking into account other income): 18%
• Higher rate: 24%

As of 2026, the rates are 18% and 24% following the changes announced in the October 2024 Budget. For non-resident companies disposing of UK commercial property, the gain is within the scope of UK corporation tax at 25% (with the possibility of indexation allowance up to January 2018).

Non-residents are entitled to the annual exempt amount (AEA) of £3,000 for individuals, in the same way as UK residents. The AEA is reduced where it has been partially used against other gains.

The 60-Day Filing and Payment Obligation

The most operationally important aspect of NRCGT is the 60-day filing and payment rule, introduced from 27 October 2021:

A non-UK-resident individual (or trustee, or company) disposing of UK land and property must:

1. Report the disposal to HMRC within 60 days of completion (not exchange)
2. Pay the estimated tax due within the same 60-day period

This 60-day window runs from the date of completion, not the date of exchange. For properties where completion follows exchange by weeks or months, this can be tight. The reporting is made via HMRC's Capital Gains Tax UK Property Service, which is separate from self-assessment.

Failure to file or pay within 60 days attracts:

• A £100 automatic late filing penalty
• Further daily/periodic penalties for continued non-compliance
• Interest on any unpaid tax

Where the individual is within self-assessment (for example, because they also have a UK rental income requirement), the NRCGT disposal must also be reported on the annual self-assessment return, with any adjustments made at that point (for example, if the estimated tax paid within 60 days was too high or too low). The 60-day payment is credited against the self-assessment liability.

How the Gain Is Calculated

The NRCGT gain is calculated broadly in the same way as any UK CGT disposal:

Proceeds (including any deferred consideration, subject to market value rules for transactions with connected parties) minus:

• Allowable costs: original acquisition cost, SDLT on purchase, legal fees, estate agent fees on disposal, and improvement expenditure (capital expenditure that enhances the property — not repairs or maintenance)
• Rebased cost: for residential property purchased before 5 April 2015, the gain can be calculated using 5 April 2015 as the deemed acquisition date (with HMRC-agreed April 2015 value). For commercial property purchased before 5 April 2019, the equivalent rebasing date applies
• Annual exempt amount

Available Reliefs

1. Principal Private Residence (PPR) Relief

Where the property has been used as the individual's main or principal private residence for part or all of the ownership period, PPR relief may reduce or eliminate the NRCGT charge. For non-residents, PPR is available but the qualification conditions are more restrictive post-April 2015:

A non-resident can claim PPR for periods when the property is used as their main residence during a "qualifying period." A qualifying period for a non-resident is defined as a tax year in which the non-resident individual spent at least 90 nights in the property. This is a stricter test than for UK residents (who simply need the property to be their main residence).

For non-residents who genuinely used the UK property as their home during periods of return visits — and can evidence at least 90 nights per year — PPR can be a powerful relief.

2. Letting Relief

Letting relief (up to £40,000, but limited since 2020 to cases where the owner occupies the property alongside the tenant) is largely unavailable for non-residents who do not also live in the property, which is the typical position for overseas landlords.

3. Capital Losses

NRCGT losses can be set against NRCGT gains in the same year, or carried forward against future NRCGT gains. A non-resident cannot, however, use NRCGT losses against non-property UK CGT gains (which are largely outside scope anyway) or against overseas gains.

Where a non-resident elects to be within the full UK CGT regime for a year (by making an election for UK-wide CGT treatment), losses on UK property can be used against all UK-source gains, but this is rarely advantageous.

4. Time Apportionment

As an alternative to rebasing, individuals who owned the property before the NRCGT start dates may elect for time apportionment — treating the entire gain as accruing evenly over the ownership period and taxing only the proportion attributable to the post-NRCGT-start-date period. This may produce a better result than rebasing where the property has increased significantly in value since the NRCGT date.

Indirect Disposals: The Property-Rich Test

Where a non-resident disposes of shares or partnership interests in an entity that derives 75% or more of its value from UK land, and the non-resident holds at least 25% of the entity, the disposal may be an NRCGT disposal. This rule prevents non-residents from circumventing NRCGT by wrapping UK property in an offshore company and selling the shares.

Shares listed on a recognised stock exchange are excluded, as are disposals of social housing entity shares. For property investment companies and property development vehicles, indirect disposal NRCGT requires careful analysis before any share sale.

Planning Considerations

• Time a disposal to the correct part of the tax year if split-year treatment applies and the disposal can be made in the overseas part
• Claim PPR where the property genuinely served as a main residence and the 90-night test can be met for the relevant periods
• Consider selling in a year with other NRCGT or UK losses to offset against the gain
• Obtain a professional valuation at the NRCGT rebasing date if the property was acquired before the relevant start date — a higher rebasing value reduces the taxable gain
• Structure multi-property sales carefully across tax years to make maximum use of the AEA each year

How Global Investments Can Help

Global Investments advises non-resident clients on the NRCGT implications of UK property disposals — from gain calculation and rebasing through to PPR eligibility, 60-day reporting compliance, and interaction with self-assessment. We coordinate with specialist property solicitors and tax advisers to ensure disposals are handled correctly and that all available reliefs are claimed. This guide reflects the position as of 2026; NRCGT rates, rules, and rebasing dates are subject to change. Professional advice before any UK property disposal is strongly recommended.