You may have to pay Capital Gains Tax when you sell (or ‘dispose of’) your UK home if you’re not UK resident for tax purposes. This only applies if you sold your home after 5 April 2015.

Even if you have no tax to pay, you must tell HM Revenue and Customs (HMRC) you’ve sold the property within 30 days of transferring ownership (conveyancing).

The rules are different if you’re UK resident and sell your home.

Tax relief

In most cases you won’t have to pay tax if you sell your home before 6 October 2016. You must have lived in it as your only or main home at some time before 5 April 2015.

This is because:

  • you get a tax relief called Private Residence Relief for the last 18 months you own your home
  • non-residents only pay tax on any gain made since 5 April 2015

If you sell your home on or after 6 October 2016, to qualify for relief for each tax year after 5 April 2015:

  • you, your spouse or civil partner must have spent at least 90 days in your UK home during that tax year
  • you must nominate the home as your only or main home when you tell HMRC you’ve sold it

You get relief for the last 18 months you own your home if you qualify for tax relief for any period, with some exceptions.

When you don’t get tax relief for the last 18 months

You don’t get full tax relief for the last 18 months you owned your home if:

  • you never lived in part of the property because you let it out or used it for business
  • the grounds, including all the buildings, were greater than 5,000 metres squared (just over an acre) in total

You can work out how much tax relief you get.

Work out your gain

When you know how much relief you get, you must work out your gain to know how much tax you owe.