Guidance

Work out your tax if you're a non-resident selling a UK residential property

Find out how to work out your taxable capital gain or loss if you're a non-resident selling a UK residential property.

Non-resident Capital Gains Tax calculator

Work out what tax to pay if you’ve sold or disposed of a UK residential property since 6 April 2015.

You can use the non-resident Capital Gains Tax calculator if you’re a non-UK resident individual who’s sold or given away your entire share of a UK residential property.

You must report a disposal within 30 days of the property being conveyed and make payment of the tax due. You can amend your return later if necessary.

Do not use the calculator if:

Before you start you’ll need to know:

  • your share of the property, if it’s jointly owned
  • when you became the owner of the property
  • how much you paid for the property (or your share of it)
  • the market value of the property (or your share of it) at the time you got it, if you did not buy the property yourself
  • when you stopped owning the property
  • how much you sold the property (or your share of it) for
  • the costs of any improvements you’ve made
  • your estimated UK income in the tax year you stopped owning it
  • the market value at 5 April 2015 if you owned it at that date

If you use the market value at 5 April 2015 you can only include the costs of improvements made after this date.

You can use the calculator to:

  • help you decide which method of working out the amount of chargeable gain is best for you if you owned the property at 5 April 2015
  • help you work out an amount of Private Residence Relief deductible from any calculated gain
  • take into account ‘in year’ allowable losses

Calculate Capital Gains Tax

Manually calculate your gain or loss

There are 3 ways to calculate your gain or loss:

  • using the market value at 5 April 2015
  • by working out the gain over the whole period (the date the property was acquired to the date it was disposed of) and then working out what the gain since 5 April 2015 is as a proportion - known as time apportionment
  • by working out the gain over the whole period

If you’re a company then you need to take the Annual Tax on Enveloped Dwellings (ATED) position into account. The section below explains this.

A property may be subject to both ATED-related Capital Gains Tax and non-residents Capital Gains Tax.

If both charges apply:

  • ATED-related Capital Gains Tax will take precedence
  • any ATED-related gain will be subject to ATED-related Capital Gains Tax at 28%
  • any remaining gains made after 5 April 2015 will be subject to non-residents Capital Gains Tax at 20%

Rebasing

For disposals of UK residential properties by non-residents where you owned the property before 6 April 2015 the standard approach for calculating the gain is to use the market value at 5 April 2015.

  1. Establish the value of your property as of 5 April 2015 (known as ‘rebasing’).
  2. Work out the difference between the value on 5 April 2015 and the value when you disposed of the property.
  3. Deduct any costs of improving the property (enhancement costs) incurred from 5 April 2015 and the legal cost of selling the property (incidental disposal costs).

You can use the market value at 5 April 2015 (rebase) to calculate your gain or loss if you made a disposal of UK residential property after 5 April 2015 whilst either non-resident or during the overseas part of a split year, and you meet the temporary non-residence rules.

Example of the rebasing method

Rebasing computation - gain from 5 April 2015 to disposal:

  • date of acquisition - 5 January 2011
  • acquisition costs - £500,000
  • date of disposal - 6 June 2016
Disposal proceeds £1,250,000
Incidental disposal costs £30,000
Net disposal proceeds £1,220,000
Market value at 5 April 2015 £1,000,000
Enhancement costs £0
Total cost £1,000,000
Gain over period from 5 April 2015 to disposal £220,000

Time apportionment

You can work out a simple straight-line time apportionment of the whole gain made over the period you owned the property.

Example of straight-line time apportionment

Total ownership 65 months, period from 5 April 2015 to disposal (6 June 2016) was 14 months, proportion of ownership relates to period from 5 April 2015 to disposal (14/65).

Disposal proceeds £1,250,000
Incidental disposal costs £30,000
Net disposal proceeds £1,220,000
Acquisition cost £750,000
Incidental costs of acquisition £40,000
Enhancement costs £0
Total acquisition cost £790,000
Gain over period of ownership £430,000
Time apportioned post 5 April 2015 gain (430,000 x 14/65) £92,615

Gain over whole period of ownership

This computation method may only be worth considering if you’ve made a loss. In the previous example the gain would be £430,000 so this method would not be beneficial. You can decide not to make an apportionment, particularly if you want to establish an amount of loss on a property.

Example of gain over whole period of ownership

Disposal proceeds £1,250,000
Incidental disposal costs £30,000
Net disposal proceeds £1,220,000
Acquisition cost £750,000
Incidental costs of acquisition £40,000
Enhancement costs £0
Total acquisition cost £790,000
Gain over period of ownership £430,000

Mixed use apportionment

If you changed the use of the property while you owned it you can time apportion any gain to reflect any time the property was not residential. If the property was in mixed residential and non-residential use, then use a fair and reasonable apportionment of the gain made.

Valuations

It’s your responsibility to get an accurate valuation of the property. HMRC do not have a preference for how this should be done. You may want to use a professional valuer or get more than one valuation.

If you’re using the rebasing computation method it was not necessary to get a valuation in April 2015. You can wait until you make the disposal but it would be helpful to record what condition the property was in and any unusual features as this will help make a fair valuation.

You can ask HMRC to check your valuation by using form CG34. This check takes at least 2 months and can only be requested after disposal.

Use losses to reduce your gain

You have to report the disposal to HMRC even if you’ve made a loss.

You must use losses to reduce gains of the same year made on other UK residential property. You can carry forward unused losses to use against UK residential property disposals in a later tax year.

If you’re an individual and your total taxable gain is above the Annual Exempt Amount (AEA), you can deduct unused losses from disposal of UK residential property in previous tax years. If that reduces your gain to the AEA, you can carry forward any remaining losses to a future tax year.

Changes to your residence status and losses

If you change your residence status from non-resident to UK resident you’ll be able to use unused losses on UK residential property as general losses against other chargeable gains.

If you’re a UK resident and become non-resident you’ll be able to use unused UK residential property losses against UK residential property gains you make in future.

Find out about losses when disposing assets to family and other ‘connected’ people.

Annual Exempt Amount

You only have to pay Capital Gains Tax on your overall gains above your Annual Exempt Amount (AEA).

Check the Capital Gains Tax rates and annual tax-free allowances.

Private Residence Relief

If the property was your residence, Private Residence Relief may apply to all or part of the gain.

Work out your Capital Gains Tax rate

Add together all your taxable UK income and use this figure to work out your Capital Gains Tax rate.

Calculate the tax you owe

To calculate the tax you owe for the first property you disposed of in the tax year, if you were non-resident for the year:

  1. Work out the gain for the property you’ve disposed of.
  2. If you’re an individual, deduct the AEA, if applicable.
  3. Deduct any allowable non-resident Capital Gains Tax losses from an earlier year.
  4. Work out the Capital Gains Tax rate.
  5. Find out when you need to pay Capital Gains Tax as a non-resident selling a UK residential property.
  6. Report and pay HMRC within 30 days of conveyance.

If you disposed of other properties in the same tax year:

  1. Work out the gain for each property you’ve disposed of.
  2. Deduct any unused allowable losses.
  3. Deduct any remaining AEA, taking into account if some or all of this has already been used for a disposal earlier in the tax year.
  4. Work out the Capital Gains Tax rate taking into account the amount of the rate band already used by earlier disposals in the year.
  5. Report and pay HMRC within 30 days of conveyance.
Published 17 November 2015
Last updated 9 June 2016 + show all updates
  1. Link and associated guidance about the non-resident Capital Gains Tax calculator has been added.
  2. In paragraph calculating the tax you owe point 5 in both ordered lists and point 6 in the 2nd ordered list amended.
  3. First published.