Non-resident landlords selling UK property – How might it affect your tax bill?
Andy Noton, 6 May 2026
Andy Noton, 6 May 2026
If you live outside the UK and are selling a UK property, there is a good chance you will still have a UK tax liability.
This often comes as a surprise, particularly for those who left the UK some time ago.
Non-residents are within the scope of UK Capital Gains Tax (CGT) when selling UK property.
This applies in most cases, whether the property is residential or commercial.
The Government has tightened the rules over the last few Budgets, so it is no longer easy to fall outside the UK tax net simply by living abroad.
You do not have to be taxed on the full gain since purchase, which can reduce the taxable gain, especially where the property has been owned for many years.
In many cases, the property is rebased to its value as of April 2015 for residential property or April 2019 for commercial property and certain other assets.
This means only the increase in value from that date is usually taxed.
There are options to use the original cost instead, though this depends on the circumstances and whether it produces a more favourable outcome.
If you sell UK property, CGT applies at different rates from Income Tax:
These rates depend on your overall UK‑taxable income, because that determines whether you fall into the basic or higher CGT band.
Even as a non-resident, your UK income in the same tax year can push you into a higher rate.
You are required to report the sale of residential property in the UK to HMRC and pay any tax due within 60 days of completion.
This deadline applies even if you do not normally complete a UK tax return.
Missing the deadline can lead to penalties and interest, so it is important to deal with this promptly.
Certain costs can be deducted when calculating the gain. However, the rules are now narrower for non-residents.
Non-residents are currently still eligible for the annual CGT exemption, which stands at £3,000 for the 2026/27 tax year.
If the property has at any point been your main residence, Private Residence Relief (PRR) may reduce the gain on sale.
For non‑residents, PRR is only available for periods that meet the non‑resident conditions.
This generally requires that the property was used as your main home and that you spent at least 90 days in it during the relevant tax year (or were UK‑resident for that year).
Where PRR applies, the final nine months of ownership are usually exempt from Capital Gains Tax, even if the property was not occupied as your main home during that final period.
Any periods that do not meet the PRR conditions will not qualify for relief, and the gain relating to those periods will remain chargeable.
Each situation needs to be reviewed carefully to ensure the correct position is taken.
Get expert advice about selling UK property as a non-resident
Understanding how your gain is calculated and when tax becomes payable is essential to avoiding unexpected costs when you sell. Taking advice in advance can help you plan effectively and ensure the sale and reporting requirements are handled correctly.
Selling UK property as a non-resident involves complex tax rules, deadlines and reporting obligations. If you are planning to sell UK property while living abroad, we can help you navigate the process with confidence. Get in touch with our property Partner Andy Noton (andrewnoton@lubbockfine.co.uk) for tailored advice.
Our specialists regularly share insights, guidance and practical updates to help organisations navigate change with confidence. If you’d like to receive future property related updates from our team, you can sign up here.
