Capital gains tax advice for non-UK residents

If you live overseas, own rental property in Britain and are thinking of disposing of it, we’ll make sure that your tax bill is reduced as much as possible.

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Simon Thandi, UK Landlord Tax

Hi, I’m Simon.

In addition to being a director of UK Landlord Tax, I’m also a landlord. If you’re based overseas, capital gains tax can make owning property in the UK a challenge. Being aware, building a strategy, and seeking expert advice is crucial. We can answer your questions about CGT right now – give us a call.

Don’t let CGT make selling your UK property a chore

We make non-resident CGT easy by…

Calculating your capital gains tax before you sell

Before selling your property, it’s important to know how much capital gains tax you will owe. Our team can help you determine your tax liability and discuss your options before you sell so that you know exactly what CGT liability is. The CGT calculation will need to be done if you have already sold the property. After the sale has been completed, you must report the gain made to HMRC and pay any taxes due within 60 days.

Developing a strategy to reduce your CGT

As a non resident there are a number of ways you could reduce your CGT especially if you bought the property before April 2015. By taking advice first we can help you reduce the CGT.

Handling HMRC

We will handle all of the UK reporting requirements at a fixed fee to give you peace of mind. By making sure that your paperwork is correct and accurate any enquiry by HMRC can be handled quickly and confidently so that you have nothing to worry about. We’re on your side with years of experience and handling 100’s of CGT submissions to HMRC every year we’ll be right there for you.

Download our FREE UK Property Tax Guide.

A simple guide to property rental income tax and property capital gains tax for UK Landlords.

Current tax rules

Dealing with HMRC

How our tax system works outside of PAYE

Frequently asked questions

Is it possible to claim Rollover Relief?

On furnished holiday rentals and on certain trading assets, Rollover Relief is available. You may be able to defer the gain by reinvesting all or some of your proceeds.

Due to the fact that BTL properties are not included in the relief, most landlords are not eligible for rollover relief.

What is the process for reporting and paying CGT?

If a non-UK resident disposes of a property and a Capital Gains Tax liability exists, the Capital Gains Tax must be paid within 60 days of the sale.

For detailed guidance on the new rules please read our guide on how to pay capital gains tax.

How much CGT do I pay as a non-resident?

In the case of a non-resident, if you owned residential/commercial property on 5th April 2015/5th April 2019, then you can use the property value as of 5th April 2015/5th April 2019 for the purposes of the capital gains tax calculation.

Please see the capital gains tax for UK non residents article for more detailed guidance.

When I sell my property, am I eligible for tax relief or allowances?

Every individual has an annual capital gains tax allowance of £12,300 from 2020/21 to 2025/26.

Furthermore, you will be eligible for Principal Private Residence relief for any period you lived in the property as your main residence plus the last nine months prior to its sale. You have to be a resident of the property in the relevant tax year for at least 90 days to claim Principal Private Residence relief after 6th April 2015. As a result, it is unlikely that you will receive relief while you are abroad, but you may receive relief for the final nine months plus the time you occupied the property while you have lived in the property in the UK.

Is it possible to avoid capital gains tax?

Capital gains tax may be reduced or even avoided in certain circumstances. An example of this type of circumstance would be:

There is a property in Mrs Bretton’s name that she owns. If Mr Bretton has not already used his CGT exemption in the tax year in question, it may be an idea to transfer the property into joint names with him before a sale. Each partner’s income level must be taken into account, since one partner’s capital gains tax rate may be higher than the other’s. It is also important to take care as HM Revenue and Customs could challenge the transaction as invalid under anti-avoidance rules if done shortly before a sale. The spouses will also need to declare any income they receive after the transfer of the property on their tax returns, which may increase their taxes. Additionally, the property would need to be conveyed into their joint names.

Am I eligible for Relief for principal private residences?

During your ownership of a property, if it was occupied as your primary residence at any time, you will qualify for principal private residence relief.

Please read the article on CGT PPR for more information.

Currently, I am going through a divorce. How does Capital Gains Tax affect transfers of property to my ex-partner?

Divorce can be a stressful time, so you should seek professional guidance.

Divorced spouses can benefit from extended CGT relief, but only until the end of the tax year in which they separate. For more detailed information on this please see the following capital gains tax and divorce.

Are limited companies subject to capital gains tax?

Not at all. Corporations pay corporation tax instead. Profits from the sale of property held in a company are subject to 19% corporation tax.

Beginning in April 2023, the Government will tax the first £50,000 at 19%, the next £200,000 at 26.5%, and the remaining profits at 25%.  

Capital gains tax fees for non-residents

We will be able to advise you accordingly if you have sold a property or are looking to sell a property. The fees we charge vary based on the complexity of your case, but don’t worry – we always strive to provide excellent value, accuracy and efficiency.

Request a quote by getting in touch

Please feel free to drop us an email or call, and we’ll talk you through what we can do for you and how much it may cost. Depending on your needs, you may only require a Capital Gains Tax computation or a more comprehensive service that includes subsequent submissions to HMRC. In either case, our expert team will be able to guide you through the process.

Let‘s talk about property tax today

When it comes to fixed-fee tax returns for UK landlords, nobody does it better.

You should consider our non-resident CGT tax services if…

One day you might want to sell a UK property

You never know when you might sell, so it’s never too early to prepare and make smart decisions that will help you reduce your capital gains tax bill in the future.

You want to sell UK property now

We can help you if you are about to sell a house or flat in the UK and want to make sure the disposal doesn’t cost you more than it should. Besides, our passion for lettings and tax expertise might convince you that you should keep the property after all.

You’re a property investor

Our big-picture approach to tax planning can help overseas property investors manage their capital gains tax bill as part of a British property portfolio. UK Landlord Tax will help you make the most out of being involved in the UK property market, from business structures to benefiting from additional allowances.

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Generous with their time and detailed in their advice

''I am a UK based landlord who sought advice from UK Landlord Tax relating to the structuring of my limited company and the set up of a Family Investment Company (FIC) which Manjinder offered invaluable advice on. UK Landlord Tax have been super responsive, generous with their time and detailed in their advice. An extremely rare experience in today's fast paced business world. Majinder could give me chapter and verse on the implication of my children's US citizenship relating to the FIC which was an extra bonus. As far as value for money goes I couldn't have asked for more. Thank you''


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