| Who pays? | non-residents, on gains from UK property and land |
| Since when? | residential property since 6 April 2015, other property and indirect disposals since 2019 |
| Return and payment | within 60 days of completion, even with no tax or a loss |
| Rates 2026/27 | 18 or 24 percent |
| Annual exempt amount | £3,000 per tax year |
| Main residence relief | only with at least 90 days' use in the tax year |
| Updated | November 2026 |
Who pays UK tax on a sale
If you do not live in the UK, you generally pay no UK tax on capital gains, with one big exception: UK property and land. Since 6 April 2015 non-residents' gains on residential property have been taxable. Today commercial property, land and mixed-use property count too, such as the shop with a flat above.
Indirect disposals count as well: if you sell shares in a company that derives at least 75 percent of its value from UK land and you hold at least 25 percent, that too is a reportable disposal. Companies not resident in the UK have paid corporation tax rather than capital gains tax on such gains since 6 April 2019 and report them in the company tax return.
Rebasing: often only the gain since 2015 counts
If you owned a residential property before 6 April 2015, you generally calculate not from the purchase price but from the market value on 5 April 2015. Improvement costs then count only if incurred from that date. For commercial property, land and indirect disposals the equivalent date is 5 April 2019.
An example: you bought a flat in Leeds in 2010 for £200,000. On 5 April 2015 it was worth £260,000, and now you sell for £400,000. In the UK £140,000 is taxable, less selling costs and improvements since 2015, not £200,000. For the valuation at that date you need solid evidence, ideally a valuation report.
From the gain you deduct the £3,000 annual exempt amount, usable once per tax year. The rest is taxed at 18 or 24 percent: 18 percent so far as the gain, together with your UK taxable income, fits into the £37,700 basic rate band, 24 percent above.
Report and pay within 60 days
The return is compulsory whatever the result. That surprises many who sell at a loss or whose gain is below the exemption.
- 1
Watch the deadline
Return and payment must reach HMRC within 60 days of completion. That applies even with no tax due, with a loss, and even if you file Self Assessment anyway.
- 2
Gather the documents
You need the address and postcode, purchase date, the dates of exchange and completion on the sale, purchase and sale values, costs of buying, selling and improvements, and the reliefs you claim.
- 3
Report online
The return runs through a dedicated online Capital Gains Tax on UK property account. An adviser can file it for you if you give them access. HMRC then sends a payment reference for paying the tax.
- 4
Annual return
If you file a Self Assessment return anyway, for example because of rental income, you enter the sale there again for the tax year.
Reported late? What Budget 2026 changes
Miss the 60 days and you risk interest and penalties. In the Budget of 28 October 2026 the government announced an easing: if you report the sale of a residential property late but then include it in your Self Assessment return, late filing penalties are to stop building up from that point. The change is to apply from 28 October 2026 and becomes law with the Finance Bill 2026-27. Still better: report on time.
A main home in the UK? The 90-day rule
Private residence relief is available to non-residents too, on one condition: if the property is in a country where you are not tax resident, a tax year only counts if you spent at least 90 days there. A day counts if you are in the house at midnight or stay the night. The days need not be consecutive.
Your spouse's days count too. If you are both there on the same day, that counts as one day, not two. You can nominate which house is your main residence in the return to HMRC. So for a holiday home you use a few weeks a year, the relief rarely helps.
Lived in the UK until recently? If you return within 5 years of leaving, you may pay UK tax after all on gains from your time abroad. More in leaving the UK.
And at home?
Under the UK's treaties the UK keeps the right to tax gains on UK property. How your country of residence responds varies: some exempt the gain and only take it into account for the rate on your other income; others tax it and credit the UK tax, up to their own tax on that gain. Some do not tax private property gains at all after a holding period.
Watch the case where the UK does not tax the gain, for example because of private residence relief or rebasing, while your home country would. Whether your country then steps in depends on its treaty with the UK and its own rules. The principles are in the UK's tax treaties.
Frequently asked questions about selling UK property
Do I have to report the sale if I made a loss?
Yes. Non-residents must report every disposal of UK property within 60 days of completion, even with no tax due and at a loss.
How much tax is due on selling property in the UK?
18 percent within the basic rate band, 24 percent above, after the £3,000 annual exempt amount. For residential property owned before 6 April 2015 usually only the growth since 5 April 2015 counts.
Does main residence relief apply to me?
Only for tax years in which you or your spouse spent at least 90 days in the property, if you are not UK resident.
Will I pay tax again at home?
That depends on your country: many exempt or credit under their treaty with the UK. If the gain is not taxed in the UK, check whether your home country taxes it.
Sources: HMRC: Tell HMRC about Capital Gains Tax on UK property or land if you're not a UK resident; HMRC: HS307 Non-resident Capital Gains on UK land and property (2026); GOV.UK: Capital Gains Tax rates and allowances; HMRC Capital Gains Manual CG64575 and CG64582; HM Treasury: Budget 2026, Overview of tax legislation and rates
