UK Capital Gains Tax for Non-Residents

Which gains can remain taxable when you live abroad?

Living outside the UK does not by itself remove UK tax on a disposal of UK land. Direct interests in residential, commercial and mixed-use UK property can be within scope. Certain indirect interests are also covered. A share in a UK-incorporated company is not automatically taxable merely because the company is British: identify the asset, taxpayer, residence history and relevant treaty first.

This guide explains the main rules for individuals and the 2026/27 tax year. Company gains, trusts, estates, reliefs and earlier disposals require their own analysis. A return to the UK can also engage temporary non-residence rules.

Current main individual Capital Gains Tax rates

The main individual rates for chargeable gains in 2026/27 are 18% to the extent that the gain falls within the available basic-rate Income Tax band, and 24% above it. These rates do not make an otherwise out-of-scope asset taxable. The calculation depends on taxable income, allowable losses, reliefs and the available annual exemption. Use the rates for the actual disposal year; do not apply current figures to historic transactions.

For example, assume an individual has a £20,000 taxable gain after all applicable deductions and no remaining basic-rate band. At the main 24% rate, the tax is £4,800. If all of that taxable gain instead fits within the available basic-rate band, the main 18% rate gives £3,600. This is an illustration of the rate calculation, not a property valuation or a conclusion that a particular relief applies. See HMRC's current CGT rates.

A non-resident company generally pays Corporation Tax on gains from UK land and property and reports through its Company Tax Return. It does not use an individual's CGT rates or annual exemption. Trustees and personal representatives also need their applicable rules checked.

Indirect disposals: the property-rich and substantial-interest tests

The property-rich test generally asks whether 75% or more of gross asset value derives from UK land at disposal. It is a gross-value test: deducting borrowing from the property value is not the way to test it. UK land includes buildings, and interests through other entities may need to be traced.

The seller must generally have a substantial indirect interest: at least 25% investment at any time in the two years before disposal, counting relevant connected persons' interests. The statutory rights and attribution rules matter; a current share percentage alone may not settle the question. An insignificant period of ownership can affect the test. Special collective investment vehicle rules can bring a holding below 25% into charge. Trading exemptions, linked disposals and treaty terms can also alter the result.

For a simple illustration, UK land worth £800,000 in a company with gross qualifying assets of £1,000,000 represents 80%, so it passes the property-rich test. A seller who meets the substantial-interest test still needs the exceptions and treaty position checked before calculating any taxable gain on the interest sold. The land proportion alone does not determine the tax. Read HMRC's property-rich test and substantial indirect interest guidance.

Reporting, valuations and records

Non-resident individuals must normally report direct and indirect disposals of UK land, including residential and non-residential property, even where there is no tax to pay or a loss. A Self Assessment return does not automatically replace the property report. For UK residential property completed on or after 27 October 2021, the reporting and payment deadline is normally 60 days from completion. Confirm the route and deadline for a non-residential or indirect disposal and for the particular taxpayer. Company reporting follows the Corporation Tax rules. See HMRC's non-resident disposal and reporting guidance and its property-account reporting rules.

Keep acquisition and disposal documents, completion dates, purchase and sale costs, improvement invoices, occupation and letting history, earlier losses and relevant valuations. Rebasing can depend on the asset and when it entered the non-resident regime; an April 2015 or April 2019 valuation is not automatically appropriate for every sale. For an indirect disposal, also retain ownership history, connected holdings and evidence supporting gross asset values.

Practical next steps

Before agreeing a transaction, establish the taxpayer and residence position, asset type, ownership history, proposed dates and treaty jurisdiction. If completion has already happened, check the reporting deadline promptly. A foreign tax credit or treaty relief needs to be considered under the actual agreement and overseas rules; it is not an automatic guarantee that tax will be eliminated.

Questions about non-resident capital gains

Related services

• Non-resident tax advice
• Non-resident tax returns
• Non-resident landlord tax
• Capital Gains Tax support