Selling a UK Property as a Non-Resident: The 60-Day Report, CGT and Costs

The Short Answer

Non-UK residents who dispose of UK property are within scope of UK Capital Gains Tax (CGT). The rules require a return to HMRC within 60 days of completion for UK residential property, using HMRC's online reporting service, and any CGT due is normally payable at that time rather than waiting for the next tax return. Check on GOV.UK for the current rule on your facts, because exceptions and thresholds change.

Why Residence Status Matters

Your tax residence is decided by the UK's Statutory Residence Test, not by where you hold a passport or where your family lives. If you are unsure whether you count as a UK resident in the year of sale, get tax advice before exchanging contracts. The answer affects which rules, allowances and rates apply.

How the Gain Is Worked Out

In broad terms, the gain is the sale price less the purchase price and allowable costs, such as legal fees, stamp duty paid on purchase and qualifying improvement costs. Costs of selling, such as estate agent and solicitor fees, can also be deducted. Keep records for the whole time you have owned the property. Routine repairs and running costs are generally not allowable against the gain.

For some non-residents who owned residential property before April 2015, there are special rules about the starting value. If this applies to you, check the HMRC guidance or ask an adviser, because it can change the result.

Reporting and Paying

• Report on time. Use the HMRC service for reporting UK property disposals, and keep your completion date and reference.
• Pay on time. The tax due on the report is generally payable by the same deadline.
• Report even when no tax is due, if the rules say so for your case. Do not assume a loss means no report.
• Use a tax adviser if the sale price, costs or residence status are complicated.

Costs to Plan For

• Estate agent fees, agreed in advance and normally a percentage plus VAT.
• Conveyancing fees for the seller's solicitor. See our UK conveyancing timeline for overseas buyers, which is relevant to sellers too.
• Mortgage redemption and any early repayment charge.
• An EPC, which sellers must provide. Our guide to the new EPC rules covers where standards are heading.
• Leasehold information pack, if the property is a leasehold flat.
• Bank charges and exchange-rate cost if you bring the money home.

If You Let the Property Before Selling

If you have been a landlord from abroad, your rental income reporting is a separate topic. See our guide to the non-resident landlord scheme. Make sure your income tax position is up to date before the sale, since a clean record makes the sale simpler.

A Practical Timeline

• Before listing: confirm your tax residence, gather purchase and improvement records, and speak to an adviser.
• Once an offer is accepted: instruct a solicitor and ask them to prepare identity and anti-money-laundering documents early.
• At exchange: agree a completion date, and diarise the 60-day deadline from the completion date.
• After completion: report, pay and keep copies.

Why Choose Banke UK?

Banke helps overseas owners understand the process and connects them with solicitors and tax advisers who work with non-residents. To discuss a sale, contact the Banke UK team.

Tax rates, allowances and deadlines change frequently. Banke does not give tax advice. Check GOV.UK and speak to a qualified UK tax adviser for your situation. This article is general information, not legal, tax or financial advice. Rules, fees and procedures change, so confirm current details with the relevant authority or a qualified professional before you commit money.