CGT on Selling UK Property
You left, but the London flat didn't. When you finally sell, HMRC is still waiting — and the clock is 60 days, not the leisurely one you remember.
Here's the trap most departing Brits walk into: the UK stops taxing your income the moment you become non-resident, so you assume it stops taxing everything. It doesn't. UK residential property is the one asset HMRC follows you across the border for. Since April 2015, non-residents pay Capital Gains Tax on UK property gains — and the reporting deadline is a brutal 60 days from completion, whether or not any tax is actually due.
This page covers the rates, the deadline, how the gain is worked out on a property you've owned for years, when Private Residence Relief still helps, and how your new country's tax treaty stops you paying twice.
The rates & the allowance (2025/26)
What you pay
- 18% on gains within your basic-rate band
- 24% on gains above it (was 28% until April 2024)
- £3,000 annual exempt amount — only the gain above this is taxed
- Rates apply to residential property specifically
Who's caught
- Non-residents selling UK residential property (since 6 April 2015)
- Extended to all UK land + property-rich companies (since April 2019)
- Applies regardless of how long you've been abroad
- The 5-year temporary-non-residence escape does not apply to UK property
⏱️ The 60-day deadline that catches everyone
You must file a UK Property Return and pay any CGT due within 60 days of completion. This is not the old "sort it out in your Self Assessment next January" timeline — it's a hard 60 days, and a return is required even if there's no gain and no tax to pay. Automatic penalties apply for late filing. Register for HMRC's online 'Capital Gains Tax on UK property' service before you complete, not after.
Working out the gain: April 2015 rebasing
You don't pay CGT on the whole gain since you bought the place. For residential property held on 5 April 2015, the default method is rebasing: you're only taxed on the growth since its 5 April 2015 market value. Two alternatives can be elected if they produce a smaller bill:
Rebasing (default)
Tax only the gain since 5 April 2015 market value. Get a retrospective valuation before you sell.
Time apportionment
Straight-line split of the whole gain over the ownership period; only the post-April-2015 slice is taxed.
Whole-period gain
Compute the entire gain from purchase. Rarely better, but available to elect if it is.
Private Residence Relief & the 90-night rule
PRR wipes out CGT for the years a property was genuinely your main home. Non-residents can still claim it — but there's a condition designed to stop expats from claiming relief on a home they no longer live in: for a tax year to count as occupation, you (or your spouse) must spend at least 90 nights in the property that year. Miss it, and the whole year counts as non-occupation.
- Years you actually lived there (before leaving): covered by PRR
- The final 9 months of ownership: always covered if it was ever your main home
- Years abroad where you didn't hit 90 nights: not covered — taxable
- Realistically, once you've moved abroad permanently, PRR shelters the years you lived there plus the final 9 months — not the years since
Avoiding double tax in your new country
Your new country probably taxes worldwide gains — including this one. Double taxation treaties fix it: most give the UK primary taxing rights over UK-situated property, and your country of residence then grants a foreign tax credit for the UK CGT you paid (or exempts the gain). If your new country's CGT rate is higher than the UK's, you may owe the difference locally. Currency matters too — the gain is computed in sterling for HMRC and in local currency abroad, so exchange-rate movement can create a taxable gain (or loss) that didn't exist in the other currency. Coordinate the sale timing with an adviser in both jurisdictions.
❓ Common Questions
Do I pay UK Capital Gains Tax if I sell my UK house after moving abroad?▾
Yes. Since 6 April 2015, non-UK residents are within scope of UK CGT on disposals of UK residential property — leaving the country does not exempt you. (From April 2019 the net widened to all UK land, including commercial property and 'property-rich' company shares.) You pay HMRC on the gain even though you're tax-resident somewhere else. Source: HMRC / LITRG on non-residents and CGT.
What are the current CGT rates on UK residential property?▾
For 2024/25 and 2025/26: 18% on any gain falling in your basic-rate band, 24% above it. The higher residential rate was cut from 28% to 24% on 6 April 2024 — a rare piece of good news. There's an annual exempt amount of £3,000 (2024/25 and 2025/26), so only the gain above that is taxed. Source: gov.uk 'Capital Gains Tax rates'.
What is the 60-day rule?▾
As a non-resident you must file a UK Property Return and pay any CGT due within 60 days of completion of the sale. Critically, a return is required even if there's no gain or no tax to pay — miss it and HMRC charges automatic penalties. This is far tighter than the old Self Assessment timeline, and it catches out almost everyone selling from abroad. Source: HMRC / LITRG.
How is the gain calculated on a property I've owned for years?▾
For residential property you held on 5 April 2015, the default is 'rebasing' — you only pay CGT on the growth since its 5 April 2015 market value, not the whole gain since you bought it. You can instead elect to time-apportion the gain or use the whole-period gain if that works out better. Get a retrospective April 2015 valuation before you sell. Source: HMRC / LITRG.
Can I still claim Private Residence Relief as a non-resident?▾
Yes, but with a catch. Non-residents can claim PRR, but for a tax year to count as occupation, you (or your spouse) must have stayed in the property at least 90 nights in that year — otherwise the whole year is treated as non-occupation. The final 9 months of ownership are always covered if the property was ever your main home. If you've moved abroad permanently, you'll struggle to hit the 90-night test, so PRR usually only shelters the years you lived there plus the final 9 months. Source: HMRC Capital Gains Manual CG64470.
Does becoming non-resident for 5 years get me out of it?▾
Not for UK property. The temporary non-residence rule (return within ~5 years and gains realised while abroad can be taxed in your year of return) applies to other assets — but UK residential property is chargeable to non-residents regardless of how long you stay away. There is no 'wait it out' escape for UK land. Source: HMRC / LITRG.
Will I be taxed twice — once by the UK and once by my new country?▾
Usually not, thanks to double taxation treaties. Most DTAs give the UK primary taxing rights over UK-situated property, and your new country of residence then grants a foreign tax credit for the UK CGT you paid (or exempts the gain). The mechanics depend on the specific treaty and the two countries' rates — if your new country's CGT is higher, you may owe the difference there. Coordinate the timing with an adviser in both jurisdictions.
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