Capital Gains Tax For Non-Residents: UK Residential Property


Simon Misiewicz

20th August 2015

8th August 2015 – Simon Misiewicz

Are you a property investor that does not live in the UK?

Are you working with other investors that does not live in the UK?

For many years it was assumed that foreign investors that sold properties in the UK would not have to pay Capital Gain Tax (CGT). HMRC have clarified that from 5th April 2015 that any residential property investments sold by a foreign investor will have to pay CGT. (1)

Capital Gains Tax may be payable on UK residential property disposals by:

• non-resident individuals
• personal representatives of non-residents who have died
• any non-residents who are partners in a partnership
• non-resident trustees
• non-resident companies or funds

Capital Gains Tax allowances

You only have to pay Capital Gains Tax on your overall gains above your tax-free allowance (called the Annual Exempt Amount).

For the period 6 April 2015 to 5 April 2016 the Annual Exempt Amount is £11,100.

Calculating the tax you owe for the first property you disposed of in the tax year.

• Work out the gain for the property you’ve disposed of.
• Deduct the Annual Exempt Amount.
• Deduct any allowable losses.
• Work out the Capital Gains Tax rate.
• Report and pay HMRC within 30 days of conveyance.

You can notify HMRC of any gains made by using their online form.(2)

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