Guidance

Tell HMRC about Capital Gains Tax on UK property or land if you’re non-resident

Find out if you need to pay Capital Gains Tax if you're not resident in the UK and are making direct or indirect disposals of UK property or land.

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Overview

You need to submit a non-resident Capital Gains Tax return if you’ve sold or disposed of UK property or land. Land for these purposes also includes any buildings on the land. You must complete a non-resident Capital Gains Tax return if you’re a:

  • non-resident individual
  • personal representative of a non-resident who has died
  • non-resident who’s in a partnership
  • non-resident landlord
  • non-resident trustee
  • UK resident meeting split year conditions and the disposal is made in the overseas part of the tax year

You must tell HMRC within 30 days of completion of conveyance.

For example, if you convey on 1 July you must tell HMRC by 31 July.

If you do not tell HMRC before the deadline you’ll get a late filing penalty and may be charged interest if you do not do this by the 30 day deadline.

Extension to non-resident Capital Gains Tax

From 6 April 2019, non-resident Capital Gains Tax covers:

Non-resident companies

From 6 April 2019, Corporation Tax rather than Capital Gains Tax will be charged on gains from UK property or land for all non-resident companies. This includes:

  • collective investment vehicles that are deemed companies (provided they have not elected for transparent or exempt treatment)
  • life assurance companies

If you do not already submit a Corporation Tax return, you must register a non-resident company for Corporation Tax.

Deadline for reporting the disposal and payment

You must report the disposal online using the non-resident Capital Gains Tax return by the 30 day deadline, even if:

  • you’ve no tax to pay
  • you’ve made a loss
  • you’re registered for Self Assessment

If a property was jointly owned, each owner must tell HMRC about their own gain or loss. Special rules apply if you give a UK property to your spouse, your civil partner, or to charity .

You also have to pay any non-resident Capital Gains Tax due within the same 30 day period, although there are exceptions to the pay now rule if you already have an existing relationship with HMRC - for example, through Self Assessment. If you do, you can either:

  • pay when you submit your return
  • defer payment until your normal due payment date

Penalties

You have 30 days from the date of conveyance to report your disposal on the non-resident Capital Gains Tax return, and pay any tax due. You’ll get a late filing penalty and be charged interest if you do not do this by the 30 day deadline.

If you miss the deadline by:

  • up to 6 months, you will get a penalty of £100
  • more than 6 months, a further penalty of £300 or 5% of any tax due, whichever is greater
  • more than 12 months, a further penalty of £300 or 5% of any tax due, whichever is greater

If you have to pay any non-resident Capital Gains Tax within the same 30 day period, late payment penalties and interest may also be due if you miss the deadline.

If any non-resident Capital Gains Tax remains unpaid after 31 January after the end of the tax year of the disposal, a late payment penalty of 5% of the tax outstanding will be charged.

Work out what you need to pay

You’ll need to work out what you need to pay if you’ve sold or disposed of either:

  • a UK residential property since 6 April 2015
  • a UK non-residential property or land from 6 April 2019
  • an indirect disposal of UK land from 6 April 2019

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. The calculator will take you about 10 minutes to use.

Do not use the calculator if:

  • you used all or part of the property to conduct business
  • your property, garden and grounds take up more than 0.5 hectares
  • you’re an agent, trustee or personal representative
  • you’ve sold or given away a part share of your UK residential property
  • you’ve sold or given away UK non-residential property or land
  • you’ve made an indirect disposal of UK land

How to report disposals

You must complete a separate online non-resident Capital Gains Tax return for each disposal, and any amendments you make.

When you report a disposal, you need to include a computation of your gains and losses along with your return.

If you choose to defer payment, the computation should be included with your relevant Self Assessment return and payment made as part of your normal end of year payment.

Amend your non-resident Capital Gains Tax return

You can use estimated figures when you report a disposal to HMRC. If you have other taxable UK income this may affect the rate of non-resident Capital Gains Tax you pay.

You must report the disposal of your property or land within 30 days of conveyance, so you can give an estimate of your taxable UK income on your non-resident Capital Gains Tax return.

You can use the online form to send an amended non-resident Capital Gains Tax return showing your final figure.

You can make an amendment to your return up to 12 months after the Self Assessment filing date of the year you’re making the return. For example, if you made a disposal between 6 April 2015 and 5 April 2016, you could make an amendment to your return up to 31 January 2018.

Direct disposals of UK property or land

You must tell HMRC and may have to pay Capital Gains Tax when you sell or dispose of an interest in UK property or land.

There are different rates of Capital Gains Tax to pay depending on whether the direct disposal is for residential or non-residential UK property or land.

Residential property is defined as:

  • a building used or suitable for use as a dwelling
  • properties in the process of being constructed or adapted for use as a dwelling
  • the garden or grounds of such a building, including structures on the garden or grounds
  • the right to acquire a UK dwelling ‘off plan’

Non-residential property or land includes:

  • commercial property, for example shops or offices
  • agricultural land
  • forests
  • any other land or property which is not used as a residence

A ‘mixed use’ property is one that has both residential and non-residential elements. For example, a flat connected to a shop, doctor’s surgery or office.

Indirect disposals of UK property or land

You must tell HMRC and may have to pay Capital Gains Tax when you make an indirect disposal of UK land.

Land for these purposes also includes any buildings on the land.

When an indirect disposal occurs

An indirect disposal occurs when a non-resident sells shares in a company that derives 75% or more of its gross asset value from UK land, and the person making the disposal has an investment of at least 25% in that company which holds UK land as an investment.

The gains on indirect disposals will be calculated using the value of the asset being disposed of, rather than the value of the underlying UK land.

Indirect disposals do not apply when:

  • land used in a continuing trade is also disposed of
  • 2 or more companies are sold at the same time by the same investors and the property richness test would not apply if the disposals were taken as one transaction - read more information about property richness

Temporary non-residents

Different rules apply if you’re temporarily non-resident and make disposals during a tax year when you were either:

  • not resident in the UK
  • overseas as part of a split year

If you meet the temporary non-resident rules then the portion of gain not charged to non-resident Capital Gains Tax will come within the scope of UK Capital Gains Tax for the year, or period of return to the UK.

If you do not meet the temporary non-resident rules, there will not be an additional UK Capital Gains Tax charge for the earlier disposal when you return to the UK.

Individuals (including trustees and executors, or personal representatives of a deceased person) are entitled to the Capital Gains Tax Annual Exempt Amount (AEA). You can only use the AEA once in a tax year, even if it was a split year.

Personal representatives of a deceased person who lived abroad

If you’re the personal representative of a deceased person who lived abroad, you’ll need to report the disposal to HMRC.

The AEA is available for disposals in the same tax year as the death or the following 2 tax years.

Keep records of what you report to HMRC

You need to keep records to support the gains or losses you report to HMRC.

If your calculation uses a market value, for example, if you owned the whole or part of an interest in a UK property or land, it’s your responsibility to accurately value the property or land.

Depending on the property or land concerned, you may want to use a professional valuer or get more than one valuation.

Self Assessment tax returns

If you need to complete a Self Assessment tax return you must still fill in the Capital Gains section of your tax return for the year of the disposal, unless the gain is exempt due to Private Residence Relief.

ATED-related Capital Gains Tax will no longer apply to disposals made from 6 April 2019. Any gain made by a company from 6 April 2019 will now be liable to Corporation Tax.

If you do not already submit a Corporation Tax return, you must register a non-resident company for Corporation Tax.

If you made the disposal before 6 April 2019 you’ll also:

Use a tax agent or adviser

Email: non-residentcgt.spt@hmrc.gov.uk to give HMRC limited authorisation to deal directly with your agent or advisor.

Limited authorisation means this authorisation only applies to matters concerning non-residents Capital Gains Tax.

You do not need limited authorisation if you already have appropriate authorisation in place for someone to deal with HMRC on your behalf about your Income Tax.

Published 6 April 2015
Last updated 3 October 2019 + show all updates
  1. Invitation to 'Take part in our research to help improve GOV.UK' added.
  2. The guidance has been updated to reflect the extension of non-resident Capital Gains Tax to include all UK property or land, non-resident companies disposing of UK property or land now being liable to Corporation Tax and ATED-related Capital Gains Tax no longer applying from 6 April 2019.
  3. The 'deadline for reporting disposals and payments' section has been updated.
  4. Minor text change to the temporary guidance on how to send a return form for 2018 to 2019 while the form is being updated.
  5. The deadline for reporting disposals and payments has been updated, and temporary guidance added on how to send a return form for 2018 to 2019.
  6. Section on penalties has been updated to explain when interest could be charged.
  7. The Penalties section has been updated and a new bullet has been added to 'what isn’t residential property' section.
  8. Paragraph 'Temporary non-residents - making disposals in the overseas part of a split year' title changed to 'Temporary non-residents'. Minor text change to first sentence.
  9. Rates, allowances and duties have been updated for the tax year 2016 to 2017.
  10. First published.