UK Capital Gains Tax for Non-Residents

UK capital gains tax does not just affect UK residents. Overseas investors, expat landlords, international founders and non-resident directors are often surprised to discover that the UK can still tax gains made on UK assets—particularly property and shares in UK companies. If you sell a UK rental property, dispose of shares in a property-rich special purpose vehicle (SPV), or exit a UK business, you may trigger UK CGT even if you have not lived in the country for years.

At the same time, double tax treaties, non-resident reliefs and structuring options can significantly reduce your exposure when handled correctly. The key is to understand when the UK has taxing rights, which assets are in scope, and how quickly you must report and pay. As a specialist firm working with non-resident owners, Accusolve Accountants helps you prepare accurate calculations, avoid HMRC penalties and align your UK position with your wider international tax strategy.

1. When Do Non-UK Residents Pay Capital Gains Tax in the UK?

The starting point is that non-UK residents are usually not taxed on gains from assets that are wholly outside the UK. However, UK-situs assets are different. In many cases, HMRC has the right to tax your gains even if you are fully non-resident and pay tax elsewhere.

Common examples where non-residents may face UK CGT include:

• Direct ownership of UK property: Residential or commercial properties are typically within scope of non-resident capital gains tax (NRCGT). See our Non-Resident Landlord Tax page for rental-related rules.
• Shares in UK “property-rich” companies: If a company derives at least 50% of its value from UK land and you hold a substantial interest (typically ≥25%), disposals of those shares may be taxable in the UK.
• Assets used in a UK trade: Gains on goodwill, business assets or intellectual property linked to a UK permanent establishment can also be caught.
• SPVs and investment structures: UK-incorporated SPVs holding UK real estate are commonly used by overseas investors. Disposing of the SPV itself can fall within UK CGT rules.

These rules sit alongside your domestic tax regime and any double tax treaty between the UK and your country of residence. Coordinating these correctly is crucial to avoid being taxed twice, or missing UK filing obligations. Our Double Taxation service helps you understand how treaty provisions apply to your particular case.

2. Current Capital Gains Tax Rates Relevant to Non-Residents

Non-residents generally pay CGT at the same headline rates as UK residents, but only on the UK-sourced gains that are within scope. The rates you pay depend on the type of asset and your UK income tax band for the year in question.

2.1 Individual Capital Gains Tax Rates

Where a disposal is made by a company rather than an individual, UK corporation tax is usually charged on the gain instead of personal CGT. Our Corporation Tax and CT600 Tax Return services ensure company-level gains are correctly calculated and reported.

For a general overview of CGT and planning options, see our dedicated Capital Gains Tax page.

3. The 60-Day Reporting Rule for Non-Resident Property Disposals

One of the most common traps for non-resident owners is the 60-day UK property disposal return. Whenever a non-resident individual, trustee or certain partnerships dispose of an interest in UK land, they may need to:

• Calculate the gain (or loss) on the disposal.
• Register for the UK Property Account if not already set up.
• Submit a CGT on UK Property return to HMRC within 60 days of completion.
• Pay the estimated CGT within the same 60-day window.

This requirement applies even if:

• You have no overall gain (break-even sale).
• You make a loss.
• You normally file a UK Self Assessment tax return.
• The property is held jointly with others, or via complex ownership arrangements.

Failing to meet the 60-day deadline can result in automatic penalties and interest. Accusolve can handle the whole process—from calculating your gain and preparing the return to submitting it electronically and advising on how and when to pay HMRC. Our Non-Resident Tax Returns service is structured specifically around these types of deadlines.

4. Common Capital Gains Pitfalls for Non-Residents

Because non-resident CGT is layered on top of international rules, there are several recurring issues we see when new clients approach us for help.

4.1 Assuming Only the Country of Residence Can Tax the Gain

Many overseas investors assume that only their home jurisdiction can tax a gain, so they ignore UK rules entirely. In reality, most double tax treaties give the source country (where the property is located) primary taxing rights on real estate gains, and often on shares in property-rich entities. If you dispose of a UK property or a UK property-holding SPV, the UK usually has the first right to tax.

Accusolve reviews your position against the relevant treaty, assesses how much tax is due in the UK and how to relieve double taxation in your home country. Our International Services hub brings together the cross-border support non-residents typically need, from CGT and income tax to ongoing compliance.

4.2 Misunderstanding “Rebasing” and Valuations

Non-resident CGT on property often uses a special “rebasing” approach. For some assets, only the gain from a set date (for example, an April 2015 or April 2019 value) is within scope. That means you may need:

• A professional valuation at the rebasing date.
• Evidence of improvement costs, acquisition costs and selling costs.
• Correct treatment of periods of occupation and letting.

Using the wrong rebasing method or an unsupported valuation can lead to excessive tax or a challenge from HMRC. Accusolve works with valuation professionals where necessary and documents your position clearly to reduce enquiry risk.

4.3 Missing Reliefs and Allowances

Non-residents often overlook reliefs, including:

• Spousal transfers prior to sale (subject to non-dom and residence considerations).
• Correct use of the annual exempt amount (£3,000 per person).
• Use of losses from other disposals to offset gains.

Careful sequencing of sales and ownership, particularly when a couple is partially UK-connected, can help reduce the tax payable. Our Personal Tax Returns & Non-Dom Support service looks at your wider position rather than treating each gain in isolation.

4.4 Overlooking Rental, Income Tax and Social Security Interactions

Capital gains rarely exist in a vacuum. Non-resident landlords also have:

• Ongoing income tax obligations on rental profits under the Non-Resident Landlord Tax regime.
• Reporting requirements and PAYE/NIC issues when employing staff in the UK or abroad, covered by our Employment, Payroll & Social Security Abroad service.
• Company filing deadlines and CT600 submissions if investments are held through UK companies, supported by UK Annual Accounts & Compliance.

Accusolve takes a joined-up approach, ensuring your CGT position is consistent with your rental income, employment structure and company filings.

5. How Accusolve Works With Non-Resident Clients

Accusolve Accountants is built around the needs of overseas owners, expats and non-resident directors who want reliable, proactive UK tax support without needing to be physically present in the UK. We operate as a fully remote, cloud-based firm, providing clear guidance and handling HMRC interactions end-to-end.

5.1 Typical Capital Gains Projects We Handle

• Sale of UK buy-to-let property by an overseas landlord: We calculate the gain, prepare the 60-day return, advise on tax payment and then incorporate the figures into your year-end Self Assessment Tax Return where required.
• Disposal of shares in a property-rich SPV: We review the structure, apply the correct CGT or corporation tax rules and align the UK position with your domestic adviser.
• Exit from a UK trading company by an overseas founder: We assist with business sale planning, timing of disposals and integration with your wider investment and Business & Investment for Expats strategy.
• Multi-asset portfolios for internationally mobile individuals: Using our Tax Residency and UK Residency Arrival & Departure Planning services, we help clients plan when to become (or cease to be) UK resident in relation to major disposals.

For many clients, we act as a long-term partner: managing annual returns, monitoring UK filing deadlines via our Filing Reminders service, and flagging issues early so you can make informed decisions before signing contracts or exchanging on property sales.

6. Data Snapshot: Where Non-Residents Typically Need Help Most

Based on our experience working with non-resident individuals and corporate structures, most CGT-related engagements fall into the following categories: