Selling UK Property as a Non-Resident: Do You Pay Capital Gains Tax? What Is the 60-Day Rule?

For many owners holding UK property from overseas, one decisive question only comes into focus at the point of sale: as a non-UK resident, do you still owe UK tax when you sell your UK home? The answer is yes. According to HMRC/GOV.UK, non-UK residents pay UK Capital Gains Tax (CGT) on the gain when they dispose of UK residential property — the regime for non-residents is generally known as NRCGT. Just as important is the timing: the disposal must be reported and the tax paid within 60 days of completion. In this guide, IREIS Properties sets out the rules with the composure of a seasoned adviser, so you can plan with clarity before you part with the asset, rather than confronting an unfamiliar obligation only after the sale has gone through.

Do non-UK residents pay Capital Gains Tax when they sell UK property?

Yes. According to HMRC/GOV.UK, non-UK residents pay UK Capital Gains Tax on the gain when they dispose of UK residential property. This charge on non-residents was introduced on 6 April 2015, originally covering residential property; it was then extended on 6 April 2019 to all UK land and property, and to indirect disposals of shares in “property-rich” companies whose value derives mainly from UK real estate.

In other words, wherever you are based, and whether you hold a flat, a terraced house, or commercial premises, HMRC has the right to tax the gain when you dispose of UK real estate. The principle is clear: gains on UK property are taxed in the UK, regardless of where the owner lives. IREIS Properties reminds every overseas owner that this is not a new development but a long-established rule — one that has been in force for a decade and belongs in your planning well before completion. The reach of the regime is also broader than many realise: it is not confined to a direct sale of a single home, but can extend to the disposal of an interest in a structure that holds UK property, which is why understanding how your holding is owned matters before you decide to sell.

What exactly is the “60-day rule”?

The 60-day rule means that, after a non-UK resident disposes of UK residential property, the gain must be reported and any CGT paid within 60 days of the completion date, via HMRC’s online “UK Property Account”.

According to HMRC/GOV.UK, the history of this deadline is worth noting: for completions between 6 April 2020 and 26 October 2021, the original window was 30 days; from 27 October 2021 it was increased to 60 days. The current standard is 60 days. The clock runs from the completion date — the day ownership legally passes — not from the date contracts were exchanged, so it is the completion date itself that anchors your reporting timetable from the very first day.

There is one detail that is easy to overlook yet genuinely important: for non-UK residents, a return must be filed even if no tax is due. This differs from the position for UK residents, who generally do not need to file a separate return where no tax arises — but non-residents do not have that exemption. IREIS Properties places this at the top of its reminders: many overseas owners wrongly assume that no gain means no obligation, and so miss the filing requirement entirely. Reporting is done through HMRC’s online UK Property Account, and a non-resident agent or adviser can also be authorised to file on your behalf, which many owners find more practical when managing the process from abroad. Late filing or late payment can attract penalties and interest, so the wise course is to have your figures and supporting records prepared well ahead of completion.

What are the Capital Gains Tax rates for 2025/26?

According to HMRC/GOV.UK, for 2025/26 the CGT rates for individuals disposing of UK residential property are two-tiered: gains falling within the basic-rate band are taxed at 18%, and gains above it at 24%.

These two rates have been confirmed as unchanged for 2026/27. For context: the Budget of 30 October 2024 raised the rates on non-residential property and other assets to 18%/24%, but it did not change the residential-property rates, which stayed at 18%/24%. In short, the residential line is stable, and the rates that apply to a residential disposal in 2025/26 are the same two figures you will plan around.

Which tier applies depends on where your taxable income and gains fall across the rate bands in the year of disposal. A gain is not taxed in isolation: it is effectively stacked on top of your other UK taxable income for the year, so part of the same gain can fall within the basic-rate band at 18% while the remainder is taxed at 24%. IREIS Properties keeps to its professional remit here: rates are subject to change, and every owner’s income profile differs, so the precise band that applies must be calculated by a qualified UK tax adviser for your specific circumstances. This article sets out only the published rules for 2025/26 and offers no figure for any individual situation.

The annual exempt amount: £3,000

According to HMRC/GOV.UK, for 2025/26 the annual exempt amount for CGT is £3,000 for individuals, and this allowance is currently frozen.

This means that, when calculating the taxable gain, each individual may deduct £3,000 per tax year before the remainder is taxed at the 18%/24% tiers described above. For property held for many years with a substantial gain, this allowance offers only limited cushioning, but it remains a component that should not be overlooked in the calculation, and it can be more meaningful where a gain is modest. Where a property is owned jointly, each individual owner generally has their own annual exempt amount and is taxed on their own share of the gain — another reason the ownership structure deserves attention before a sale. IREIS Properties suggests clarifying with your tax adviser, before you sell, whether any of your allowance for the year has already been used against other gains.

Property bought before 2015 — how is the gain calculated?

According to HMRC/GOV.UK, the UK provides a “rebasing” arrangement for non-residents, so that historic gains arising before the regime took effect are not taxed.

Specifically: for residential property held before 6 April 2015, the default base cost is the market value at 5 April 2015 — meaning only the gain since that date is taxed, rather than the full increase across your entire ownership. Beyond this default, owners may instead elect alternative methods, such as time-apportionment, which spreads the overall gain evenly across the holding period and taxes only the portion attributable to the years after April 2015, or calculating over the whole period of ownership. Owners choose the basis that is most favourable to their position, which is why this is rarely a matter of accepting the first figure that appears.

For property first brought into charge by the 2019 extension (such as commercial property or certain indirect holdings), the rebasing date is instead 5 April 2019. Which method is most advantageous depends on the property’s historic price path and your overall tax position — and this is precisely where a professional adviser adds value, because the same property can produce materially different outcomes under different methods. A robust valuation as at the relevant rebasing date is often the single most important piece of evidence to assemble, and it is far easier to obtain and substantiate before a sale than to reconstruct afterwards. IREIS Properties recommends that owners with a long holding period assess the differences between the rebasing methods, with proper documentation, well before filing.

A composed word from IREIS Properties

Disposing of an overseas asset is never simply about achieving a price; it is an exercise that rewards planning set in motion early. For non-UK residents, the tax picture on selling UK residential property can be distilled into a few essentials: CGT is due on the gain; the disposal must be reported and paid via HMRC’s online account within 60 days of completion; a return is required even when no tax is due; the 2025/26 rates are 18%/24%; the annual exempt amount is £3,000; and property held before 2015 may benefit from a rebased cost using the 5 April 2015 market value.

The key to staying in control is to act early. By understanding how your cost base is calculated, estimating the likely liability, gathering your valuation evidence, and preparing the documents the 60-day report requires before you go to market, you can remain composed through the rhythm of the transaction rather than scrambling after completion. This is the difference between a sale that is managed and one that is merely survived. As your trilingual, London-based advisory team, IREIS Properties is glad to connect you with a qualified UK tax adviser as you plan a disposal, so that every step is placed with care and nothing is left to the final week.

Further reading: for the full picture on costs and taxes, see our UK Property Costs and Taxes Overview, or browse our Tax and Legal Guides.

This article is general information, not tax advice; rates and rules are subject to change, please consult a qualified UK tax adviser before filing.