Non-resident capital gains
Published 26 November 2025
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Who is likely to be affected
Non-resident persons who hold an interest in UK land and property.
General description of the measure
This measure makes various changes to the capital gains rules that apply to disposals of UK land and property by non-UK resident persons (non-resident capital gains (NRCG)). Broadly these:
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amend the definition of a UK property rich entity to provide that in the case of protected cell companies (PCC) it is an individual PCC cell that is to be looked at for the purposes of the property richness and substantial indirect interest tests, rather than the PCC itself
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make a change to clarify when certain individuals have to make double taxation treaty claims
Policy objective
This measure will increase trust in the tax system by clarifying the NRCG rules as they apply to PCCs and simplify the process for certain individuals.
Background to the measure
This measure was announced at Budget 2025.
Detailed proposal
Operative date
The change to the definition of property rich entities will apply to disposals made by PCCs on or after 26 November 2025.
All other changes will take effect from 1 April 2026 for companies and 6 April 2026 for individuals.
Current law
The NRCG rules are found at Part 1 and Schedules 1A, 4AA and 5AAA to the Taxation of Chargeable Gains Act 1992. These rules bring into the scope of capital gains disposals of UK land and property by non-UK resident persons, such as individuals and companies.
Proposed revisions
Legislation will be introduced in Finance Bill 2025-26 amending the non-resident capital gains property richness test, so that in the case of PCCs, a type of company made up of a number of separate cells where the assets and liabilities of one cell are segregated and protected from those of the other cells, it is each individual PCC cell that that is to be looked at for property richness purposes, rather than the PCC as a whole.
In addition an Extra-Statutory Concession that applies to non-UK resident individuals who have invested in Collective Investment Vehicles and exempts them from the requirement to make a double taxation treaty claim by return will be formalised.
Summary of impacts
Exchequer impact (£ million)
| 2025 to 2026 | 2026 to 2027 | 2027 to 2028 | 2028 to 2029 | 2029 to 2030 | 2030 to 2031 |
|---|---|---|---|---|---|
| Negligible | Negligible | Negligible | Negligible | Negligible | Negligible |
This measure is expected to have a negligible impact on the Exchequer.
Macroeconomic impact
This measure is not expected to have any significant macroeconomic impacts.
Impact on individuals, households and families
This measure primarily impacts on non- UK resident persons who are investing in the UK. It prevents the creation of protected cell companies to avoid tax and clarifies certain tax administration rules, making it easier for investments to be made in the UK.
As these are technical changes, individuals will not be required to do anything differently.
This measure is expected overall to have no impact on individuals’ experience of dealing with HMRC.
This measure is not expected to impact on family formation, stability or breakdown.
Equalities impacts
The changes introduced by this measure will apply regardless of an individual’s protected characteristics. The population impacted is expected to be a small subset of the Capital Gains Tax population. HMRC do not hold any data on the protected characteristics of those making use of these capital gains provisions and therefore cannot make an assessment of the impacts on those with protected characteristics.
Administrative impact on business including civil society organisations
The measure will have an impact on those business that enter into avoidance schemes using PCCs to avoid tax but will also clarify aspects of the tax code making it easier for them to invest in the UK.
One-off costs could include companies familiarising themselves with the change. There are not expected to be any further one-off or continuing costs.
This measure is expected overall to have no impact on business and civil society experience of dealing with HMRC.
Operational impact (£ million) (HMRC or other)
This measure will not require changes to HMRC’s processes or resources.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
The measure will be monitored through information collected from tax returns and HMRC compliance work.
Further advice
If you have any questions about this change, contact the Capital Gains Tax policy team by email: cgtbudget@hmrc.gov.uk