Non-resident Capital Gains Tax on UK property is governed by TCGA 1992 s.1A and Schedules 1A, 1B and 4AA. Finance Act 2019 rewrote the regime, replacing the original FA 2015 architecture in former ss.14B to 14H, extending the charge to non-residential UK land and to indirect disposals of shares in property-rich entities, and unifying the non-resident company gains charge into corporation tax under CTA 2009 s.2(2A). The current rates are 18 per cent and 24 per cent for individuals and 25 per cent corporation tax for companies, with rates aligned across residential and non-residential disposals from 30 October 2024.

Two practical points dominate the compliance burden. First, non-residents must file the 60-day CGT on UK property return for every UK land disposal regardless of whether tax is due. This is the single biggest asymmetry against UK-resident treatment. Second, there is no statutory conveyancer-withholding regime in UK law. The seller files the 60-day return and pays directly; older guidance referring to solicitor or conveyancer withholding from sale proceeds is wrong for UK law (it imports a US FIRPTA-style mechanism that does not exist in UK statute).

Rates and AEA at a glance, 2026/27

SellerAssetRateAEA60-day return
Non-resident individualUK residential property18% basic / 24% higher (split by unused UK basic-rate band)£3,000Every disposal, even at loss
Non-resident individualUK non-residential property18% / 24% (aligned from 30 October 2024)£3,000Every disposal
Non-resident individualIndirect disposal: shares in property-rich entity (≥75% UK land + ≥25% holding)18% / 24%£3,000Every disposal
Non-resident trustee / personal representativeUK residential property24% throughout (no basic-rate slice)£1,500 (trustees)Every disposal
Non-resident companyUK land (any class)25% main CT rate (CTA 2009 s.2(2A))None (companies have no CGT AEA)Not via 60-day return; via CT600

The rate statute is TCGA 1992 s.1H; the 60-day return statute is FA 2019 Schedule 2 as extended to 60 days by FA 2022; the every-disposal rule for non-residents is set out at gov.uk/capital-gains-tax-for-non-residents-uk-residential-property.

The post-Finance Act 2019 architecture

Before 6 April 2019, non-resident CGT lived in TCGA 1992 ss.14B to 14H (introduced by Finance Act 2015) and covered residential property only. Finance Act 2019 Schedule 1 replaced those provisions wholesale and reorganised the regime into the current architecture:

  • TCGA 1992 s.1A is the charging provision: a non-UK-resident person is chargeable to capital gains tax on chargeable gains accruing on disposals of UK land or interests in UK land, and on disposals of assets that derive at least 75 per cent of their value from UK land where the disposing person holds at least 25 per cent (the indirect-disposal limb).
  • Schedule 1A sets out the detailed mechanics for direct disposals, including the residential / non-residential / indirect categorisation, the 60-day return obligation, and the computational rules.
  • Schedule 1B covers the non-resident chargeable gains rules including the indirect-disposal mechanic.
  • Schedule 4AA sets out the three rebasing options (default rebasing to 5 April 2015 for residential or 5 April 2019 for non-residential / indirect; time-apportionment; or election for the full historic gain).

The reorganisation matters because pages still citing ss.14B to 14H are referring to a regime that has not existed in those sections since 6 April 2019. The substance carried forward into s.1A and the Schedules, but the section numbers changed. HMRC's manual at CG73700 introduces the FA 2015 origin and cross-references CG73920 onwards for the post-FA-2019 expansion.

The 60-day return: every disposal for non-residents

The 60-day return obligation is the most consequential compliance difference between non-residents and UK residents. UK residents file only where CGT is due after the £3,000 annual exempt amount, losses and reliefs. Non-residents file for every UK land disposal regardless of whether tax is due. Gov.uk states the rule verbatim:

"If you're not a resident in the UK, you must report disposals of UK property or land even if you: have no tax to pay on the disposal; have made a loss on the disposal."

Source: gov.uk/capital-gains-tax-for-non-residents-uk-residential-property (verified 2026-05-24).

The asymmetry catches non-residents who assume they are inside the same threshold logic as UK residents. A non-resident disposing of a UK property at a £20,000 loss still files the 60-day return. A non-resident disposing of a UK property where the full gain is covered by Private Residence Relief still files the 60-day return. A non-resident disposing of a UK property where the £3,000 annual exempt amount fully covers the gain still files the 60-day return. The form is filed through HMRC's online CGT on UK property service or via a paper alternative for sellers who cannot use the online route.

Late-filing penalties apply on the same schedule as UK residents: £100 fixed penalty from day 61, £10 per day for up to 90 days after the three-month mark (capped at £900), £300 or 5 per cent of tax due (whichever is higher) at six months and at twelve months. Interest on unpaid tax accrues from day 61. The penalty schedule applies even where the eventual tax position is nil; the obligation is to file, not to pay.

The myth of conveyancer withholding

UK law does not contain a statutory conveyancer-withholding regime for non-resident CGT. There is no statutory withholding rate, no automatic deduction from sale proceeds, no statutory certificate of non-liability route, and no equivalent of the US FIRPTA system. The seller is responsible for filing the 60-day CGT on UK property return and paying any tax due directly to HMRC.

What does happen in practice on some transactions is a commercial decision by the conveyancer to retain part of the sale proceeds until the seller produces evidence the 60-day return has been filed and any tax paid. This is a professional risk-management practice between solicitor and client, not a statutory obligation. The retained funds sit in the conveyancer's client account, not in an HMRC withholding account. The solicitor releases the funds once they have seen the filing confirmation and (where tax was due) the payment evidence.

Older guidance describing solicitor withholding as a 24 per cent automatic deduction or as a statutory requirement is wrong for UK law. The error appears to import the US FIRPTA mechanism (where conveyancers do withhold a statutory percentage from non-resident sellers) and apply it to UK transactions. Non-resident sellers should not rely on conveyancer withholding to handle their CGT compliance; the obligation sits with the seller and the 60-day clock runs regardless of any informal commercial retention.

Indirect disposals: shares in property-rich entities

Finance Act 2019 extended the non-resident CGT charge to indirect disposals of UK land. The mechanic catches non-residents disposing of shares (or comparable interests) in entities deriving at least 75 per cent of their gross asset value from UK land, where the disposing person holds at least 25 per cent of the entity (with connected-party holdings aggregated for the 25 per cent test).

The typical structure caught is an offshore SPV holding UK property. A non-resident selling their stake in such an SPV (a share disposal) is treated as making a UK land disposal for CGT purposes. The gain is computed on the share disposal rather than on the underlying property; the rebasing default is 5 April 2019 (the date the indirect-disposal regime came into force); the 60-day return applies to the share disposal completion date.

Worked example: indirect disposal of an offshore SPV

Casper holds 35 per cent of the shares in a Jersey-incorporated SPV that owns a £24m UK commercial property portfolio acquired in 2017. The SPV's UK property represents 88 per cent of its gross asset value (the remainder being cash and minor receivables); the 75 per cent property-richness test is met. Casper is non-UK-resident throughout the period 2022 to 2026.

Casper's 35 per cent shareholding was rebased to its 5 April 2019 market value of £4.2m under the FA 2019 indirect-disposal regime. He sells the shareholding on 1 September 2026 for £6.8m with £85,000 of disposal costs.

Net proceeds: £6,715,000

Base cost (5 April 2019 rebasing): £4,200,000

Chargeable gain: £2,515,000

Less £3,000 AEA: £2,512,000 taxable

Rate application: Casper has no UK income for 2026/27, so he has the full £50,270 unused basic-rate band available against the gain. £50,270 at 18 per cent = £9,048.60; (£2,512,000 minus £50,270) at 24 per cent = £590,815.20. Total CGT: £599,863.80.

Casper files the 60-day return by 31 October 2026 (60 days after 1 September completion) and pays £599,863.80. The SPV itself files no UK return on the share disposal (it is the shareholder's gain, not the company's), though the SPV continues to file ATED returns annually on the underlying properties where the £500,000 threshold is met.

Rebasing: three options, two default dates

Non-residents with UK land acquired before the rebasing dates have three computational options under TCGA 1992 Schedule 4AA:

  • Default rebasing. Use the market value at 5 April 2015 (residential) or 5 April 2019 (non-residential and indirect) as the base cost. The most common option for properties bought before those dates that have appreciated meaningfully.
  • Time-apportionment. Prorate the gain between the pre-2015 (or pre-2019) portion and the post-rebasing portion over the period of ownership, taxing only the post-rebasing slice. Sensible where the property has appreciated steadily and the rebasing valuation evidence is unavailable or contested.
  • Full historic gain election. Use the original acquisition cost as base cost, ignoring rebasing. Sensible only where the property has fallen in value since the rebasing date (so the historic-cost gain is smaller than the rebased gain), or where electing crystallises a loss that can be used against other UK land gains.

The election is made on the 60-day return or on the Self Assessment return. The election can be revoked or varied within the standard four-year window (TMA 1970 s.43). The rebasing valuation needs evidenceable support: a retrospective RICS Red Book valuation at the rebasing date is the standard, particularly where HMRC may challenge the figure on enquiry.

Worked example: residential disposal with 2015 rebasing

Mira bought a London buy-to-let in October 2010 for £290,000 (plus £8,500 of acquisition costs). Mira moved abroad permanently in May 2016 and has been non-UK-resident since 2017/18. The 5 April 2015 market value was £420,000 per a contemporaneous RICS Red Book valuation Mira obtained in 2015 (good practice; many non-residents do not have a contemporaneous valuation and obtain a retrospective one). Mira sells the property in November 2026 for £580,000 with £14,000 of disposal costs.

Option A, default rebasing to 5 April 2015 (£420,000):

  • Net proceeds: £580,000 − £14,000 = £566,000
  • Base cost: £420,000
  • Gain: £146,000
  • Less £3,000 AEA: £143,000 taxable
  • Rate (no UK income in 2026/27, full £50,270 basic-rate band available): £50,270 × 18% + (£143,000 − £50,270) × 24% = £9,048.60 + £22,255.20 = £31,303.80 CGT

Option B, time-apportionment over total ownership (2010-2026, 192 months; post-2015 portion 138 months out of 192 = 71.88 per cent):

  • Total gain (historic): £566,000 − £298,500 = £267,500
  • Post-2015 slice: 71.88% × £267,500 = £192,287
  • Less £3,000 AEA: £189,287 taxable
  • Rate: £50,270 × 18% + (£189,287 − £50,270) × 24% = £9,048.60 + £33,364.08 = £42,412.68 CGT

Option C, full historic gain (no rebasing):

  • Gain: £267,500 (as computed above)
  • Less £3,000 AEA: £264,500 taxable
  • Rate: £50,270 × 18% + (£264,500 − £50,270) × 24% = £9,048.60 + £51,415.20 = £60,463.80 CGT

The default rebasing saves Mira £29,160 against the full historic gain and £11,109 against time-apportionment. The arithmetic depends on the rebasing valuation: a higher 5 April 2015 valuation increases the saving. Where the contemporaneous valuation evidence is weak, time-apportionment may be the safer route because it does not depend on a specific valuation date.

The temporary non-residence trap (s.10A)

TCGA 1992 s.10A catches UK residents who emigrate, dispose of UK assets while non-resident, and return within five years. The gain made during the non-resident period on an asset acquired before becoming non-resident is recaptured into UK CGT in the year of return.

The five-year clock runs from the date of becoming non-resident under the Statutory Residence Test (Finance Act 2013 Schedule 45). The recapture applies to gains on the disposal of UK land while the seller was non-resident; the 60-day NRCGT return is still filed at the time of disposal (because the property is UK land), and s.10A operates separately to recapture the gain into UK CGT on return.

A UK landlord emigrating to Portugal in 2024, selling their UK BTL in 2025 while non-resident, and returning to UK residence in 2027 within the five-year window will have the 2025 gain recaptured in 2027/28. The 60-day NRCGT return is filed in 2025; the 2025/26 UK Self Assessment carries the disposal but no UK tax beyond what the non-resident regime already extracted; the 2027/28 SA carries the s.10A recapture computation.

The trap most commonly catches people who emigrate explicitly to crystallise UK property gains at a lower foreign rate, then return to the UK within a few years. The mechanism makes the strategy unworkable unless the emigration is genuinely permanent. The wider expat tax framework is in our leaving the UK page.

Non-resident companies: corporation tax, not CGT

Since 6 April 2019, non-resident companies disposing of UK land fall within the corporation tax charge under CTA 2009 s.2(2A) (inserted by Finance Act 2019 Schedule 1). The chargeable gain is taxed at the main corporation tax rate of 25 per cent (from 1 April 2023), with marginal relief available between £50,000 and £250,000 of augmented profits for small companies that qualify.

Most non-resident property-investment SPVs do not qualify for the small profits rate or marginal relief because:

  • Augmented profits include chargeable gains; a single property sale typically pushes augmented profits above £250,000 even where ongoing rental profits are modest
  • Associated-company aggregation reduces the £50,000 / £250,000 thresholds; an SPV that is one of several associated companies in a group has a much lower applicable threshold
  • Close investment-holding company status (CTA 2010 s.18N, CIHC) typically excludes pure investment SPVs from the small profits rate altogether

The practical position is that a non-resident company selling UK property is taxed at the 25 per cent main rate on the gain, not a blended 19 per cent / 25 per cent. Filing is via CT600 on the standard corporation tax timetable (nine months and one day after the end of the accounting period for payment of any tax due; twelve months from the end of the accounting period for the return). Non-resident companies do not use the 60-day CGT on UK property service, which is for individuals, trustees and personal representatives.

The pre-2019 ATED-related CGT regime, which taxed gains on ATED dwellings at 28 per cent regardless of the entity's residence, was repealed from 6 April 2019. ATED itself (the annual charge on enveloped dwellings worth over £500,000) continues to apply, with HMRC publishing the bands and amounts each November for the following chargeable period (which runs from 1 April). ATED and ATED-related CGT are different regimes; the former survives, the latter does not. Detail on ATED is in our dedicated ATED guide.

Want this checked against your specific situation?

Drop your email and a one-line summary. We reply within 24 hours, no phone call needed.

NRCGT versus the Non-Resident Landlord scheme

Two different regimes apply to a non-resident landlord and should not be confused:

  • Non-Resident Landlord scheme (SI 1995/2902). Applies during the period of letting. Letting agents must withhold basic-rate tax (20 per cent) on rents paid to a non-resident landlord, unless the landlord holds an HMRC approval letter under form NRL1 (individual), NRL2 (company) or NRL3 (trust). Tenants paying rent directly above £100 per week (or £5,200 per year) become the duty-holder and must withhold themselves. NRL is about ongoing rental income, not capital gains.
  • NRCGT (TCGA 1992 s.1A). Applies on the eventual disposal of the UK property (or indirect interest). The 60-day return is filed regardless of NRL status; the NRL approval letter has no effect on the NRCGT obligation.

The two systems run in parallel. A non-resident landlord with an NRL1 approval letter who sells the let property still files the 60-day NRCGT return on disposal; the NRL withholding regime ends at the date of disposal (no more rent to withhold from); the 60-day clock starts at completion. NRL detail sits in our non-resident landlord tax guide.

Worked example: returning UK resident hit by s.10A

Aisha is a UK resident throughout 2018 to 2022. She emigrates to Singapore on 1 May 2023, becomes non-UK-resident under the Statutory Residence Test from 2023/24, and sells her UK buy-to-let on 1 August 2024 for £450,000 (acquired 2018 at £290,000; default rebasing not available because the property was post-2015 acquired; base cost is the actual £290,000). The gain is £150,000 after costs. She files the 60-day NRCGT return by 30 September 2024 and pays UK CGT at 18% / 24% (no UK income year, full basic-rate band available; CGT in the £30,000 region depending on band stacking).

Aisha then returns to UK residence on 1 March 2027 (within the five-year window from 1 May 2023). TCGA 1992 s.10A applies. The 2024/25 gain is recaptured into Aisha's 2026/27 UK CGT computation. She gets credit for the UK CGT already paid via the 60-day return, but is now taxed at her current UK rate (which may be higher if her UK income on return puts her in the higher-rate band throughout). The net effect is to remove any benefit of having disposed of the property during the temporary non-resident period.

The trap does not catch genuine permanent emigration; if Aisha had stayed non-resident for at least five complete tax years from 2023/24 (i.e. through 2027/28 at minimum), the 2024/25 disposal would have stood on its non-resident terms with no recapture.

Joint ownership across residence boundaries

Where UK property is jointly owned by a UK-resident spouse and a non-resident spouse, each owner's disposal is treated according to their individual residence status. The UK-resident spouse files only where CGT is due (under the standard UK-resident 60-day rule); the non-resident spouse files for every disposal of their share. Each computes their own gain on their share, with their own base cost, their own AEA, their own losses, and their own rate-band stacking.

Inter-spouse transfers between cohabiting spouses are no-gain no-loss under TCGA 1992 s.58 regardless of either spouse's residence; the receiving spouse takes over the original base cost. The subsequent disposal by a non-resident receiving spouse triggers the 60-day return for every disposal. Detail on spouse transfers sits in our CGT on property transfers between spouses page.

SDLT, Welsh LTT and Scottish LBTT on the non-resident side

The CGT regime sits alongside the SDLT (England + Northern Ireland), LTT (Wales) and LBTT (Scotland) regimes on the buy side. Non-resident purchasers of UK residential property are subject to the 2 per cent non-resident surcharge on top of the standard SDLT rates (Finance Act 2003 Sch 4ZA + Sch 4A relevant provisions), in addition to the 5 per cent additional dwellings surcharge where applicable. The non-resident SDLT surcharge applies separately to LTT and LBTT in Wales and Scotland respectively, on the devolved regimes' own terms. Detail in our non-resident SDLT surcharge page. CGT and SDLT are independent; the existence of a non-resident SDLT surcharge has no bearing on the 60-day CGT return obligation.

The Statutory Residence Test and split-year treatment

Residence status is determined under the Statutory Residence Test in Finance Act 2013 Schedule 45. The test runs as a cascade:

  • Automatic overseas tests (Schedule 45 Part 1 paragraphs 11 to 18): fewer than 16 days in the UK in the tax year (if UK-resident in the previous three years), or fewer than 46 days (if not UK-resident in any of the previous three years), or full-time work abroad with limited UK days. Meeting any one makes the person automatically non-resident for the year.
  • Automatic UK tests (Schedule 45 Part 1 paragraphs 6 to 10): 183+ days in the UK, or only home in the UK, or full-time work in the UK. Meeting any one makes the person automatically UK-resident.
  • Sufficient ties test (Schedule 45 Part 1 paragraphs 17 to 21): for individuals not caught by the automatic tests, residence depends on days in the UK combined with UK ties (family, accommodation, work, prior-year residence, country of greatest connection).

Where a person becomes UK-resident or non-resident part-way through a tax year, split-year treatment under Schedule 45 Part 3 may apply (Cases 1 to 8). The split-year treatment determines which UK / overseas residence position applies to events on each side of the split date. For a UK property disposal, the residence position at the completion date determines whether the seller is within the non-resident 60-day every-disposal rule or the UK-resident 60-day where-tax-is-due rule.

The SRT depth sits in our Statutory Residence Test for UK property landlords page. The temporary non-residence trap under s.10A is in our temporary non-residence and the s.10A trap page.

Records and the long-term retention question

Non-resident CGT records often need to be retained for longer than the standard six-year window because the rebasing valuation evidence carries forward through the entire period of ownership:

  • Original purchase contract, completion statement, SDLT (or LTT, or LBTT) return and receipt
  • Purchase legal invoices and survey costs
  • Capital improvement invoices with descriptions of work sufficient to evidence capital versus revenue
  • Evidence of any 5 April 2015 or 5 April 2019 rebasing valuation (RICS Red Book report is the gold standard; many non-residents have only retrospective valuations, which HMRC may challenge)
  • Sale completion statement, sale legal and estate agent invoices
  • Currency conversion records where the purchase or sale was in a non-sterling currency
  • Statutory Residence Test working papers for the tax year of disposal (days in the UK, ties analysis, split-year case where relevant)
  • Evidence of any double-taxation relief claimed (foreign tax certificates, treaty residence certificates)
  • The CGT computation worksheet linking the rebasing-option choice to the final tax figure

HMRC's standard retention period for business taxpayers is five years and 10 months from the end of the tax year of disposal. In practice, retain for at least six years after disposal. For rebasing valuations, retain indefinitely from the rebasing date until the property is sold; the same valuation will be the load-bearing CGT evidence regardless of when the eventual sale happens.

Where this fits in our wider non-resident property coverage

The CGT regime is one element of a broader non-resident landlord tax position that also includes ongoing income tax (the NRL scheme), SDLT (the 2 per cent non-resident surcharge), ATED (where the property is held through a company and exceeds £500,000), and the wider Statutory Residence Test / domicile-reform framework. Companion pages:

Cross-references on the cluster of cross-border applied-mechanic pages: CGT on property transfers between spouses (where one spouse is non-resident); CGT on inherited rental property (where a beneficiary is non-resident); CGT on property transfers in divorce (where one spouse relocates during the settlement).