Non-Resident Capital Gains Tax UK 2026 — Complete Overseas Landlord Guide to NRCGT on UK Property Sales

What disposals are chargeable — the two regimes

The scope of NRCGT has two key start dates — one for residential property, one for all other UK property. Understanding which regime applies determines what gains are chargeable:

• Residential property — chargeable from 6 April 2015: All disposals of UK residential property by non-UK residents are chargeable to CGT from 6 April 2015 regardless of when the property was acquired. 'UK residential property' broadly means a dwelling — a building designed or adapted for use as a dwelling (including flats and houses). Non-UK residential property is not within the scope
• All UK property and land — chargeable from 6 April 2019: From 6 April 2019, the regime was extended to all UK land and property — including commercial property, mixed-use property, and indirect disposals (disposals of shares or interests in 'property-rich' entities where more than 75% of the entity's value derives from UK land). This extension means that non-UK resident landlords who sell commercial or mixed-use property in the UK are now chargeable to CGT on gains from 6 April 2019
• Rebasing — only gains from the relevant start date are chargeable: For disposals on or after 6 April 2015 (residential) or 6 April 2019 (other), the gain is computed by reference to the market value of the property at the relevant start date (the 'rebasing' date). The taxable gain is the increase in value from the rebasing date to the disposal date — not the total gain since original acquisition. The alternative computation method allows the non-resident to use the original acquisition cost and time-apportion the gain between pre-rebasing and post-rebasing periods, but this can be complex
• UK property account — mandatory for NRCGT reporting: HMRC's online UK property account (accessed via HMRC online services or the Government Gateway) is the mechanism for filing NRCGT returns since 27 October 2021. The overseas landlord (or their agent) must create or access a UK property account, report the disposal details, compute the gain, apply any reliefs, and pay the CGT — all within 60 days of completion. A Self Assessment registered taxpayer must ALSO include the disposal in their annual Self Assessment return (with credit for CGT already paid)

The 60-day rule — reporting and payment deadline

The 60-day reporting and payment rule is the most critical compliance obligation for non-UK resident landlords selling UK property. It applies strictly from the completion date:

• What triggers the 60-day clock: The 60-day clock starts on the date of completion — the date legal title transfers, which is the date the buyer pays the purchase price and receives the title deeds. The clock does not start on the exchange date or the date contracts are signed. For new-build purchases, completion is the date the property is built and the buyer takes legal title (not the reservation date)
• What must be done within 60 days: Within 60 days of completion, the non-resident landlord must: (1) file an NRCGT return (online UK property account); (2) compute the gain and apply any available reliefs (annual exempt amount; principal private residence relief; losses brought forward); and (3) pay the CGT due. If there is no gain (or there is a loss), a return must still be filed — the 60-day rule is a reporting obligation, not just a payment obligation
• Reporting even where a loss or nil gain: A non-UK resident who sells UK property at a loss, or where the gain is fully covered by the annual exempt amount or other reliefs, must still file an NRCGT return within 60 days. This is a common error — overseas landlords sometimes assume that 'no tax to pay' means 'no return to file'. HMRC has confirmed the reporting obligation applies regardless of whether CGT is payable
• Penalties for late filing and payment: Filing the NRCGT return after the 60-day deadline incurs: (1) an initial fixed penalty of £100 for returns up to 6 months late; (2) a further fixed penalty of £300 (or 5% of the tax due if higher) for returns 6-12 months late; and (3) a further fixed penalty of £300 (or 5% of the tax due if higher) for returns over 12 months late. Daily penalties of £10 can also apply. Interest on late payment runs from the 61st day after completion at HMRC rates (currently approximately 7.5% in 2026)

NRCGT rates, annual exempt amount, and reliefs

The CGT rates and reliefs available to non-UK resident individuals are broadly the same as for UK residents, with some differences in the application of the principal private residence relief:

• Residential property CGT rates 2026-27: Gains on UK residential property by non-resident individuals are taxed at 18% (where the individual would be a basic rate taxpayer if the gain were added to their UK income) or 24% (where the individual would be a higher rate taxpayer). For an individual with no UK income, the residential property gain is treated as the top slice of the individual's income for rate purposes — the rate depends on the individual's total UK income and the gain itself. The 18%/24% rates for residential property disposals have applied since 30 October 2024 (increased from 18%/28%)
• Commercial property CGT rates 2026-27: Gains on commercial property (and other non-residential disposals caught by the post-April 2019 extension) are taxed at 10% (basic rate) or 20% (higher rate) for individuals — the same rates as for other UK assets
• Annual exempt amount (AEA): Non-UK resident individuals are entitled to the same annual CGT exempt amount as UK residents — £3,000 for 2026-27 (reduced from £6,000 in 2023-24 and £12,300 in 2022-23). The AEA covers the first £3,000 of net gains in the tax year. Non-UK resident individuals who have other UK capital gains in the same tax year must allocate the AEA across all UK gains
• Principal private residence (PPR) relief for non-residents: A non-UK resident can claim PPR relief on gains from a UK residential property — but the conditions are more restrictive than for UK residents. For a non-resident to qualify for PPR on UK property, they must have occupied the property as their only or main residence AND have satisfied the 'day count test': spending at least 90 days (or 183 days in certain cases) in the UK in the relevant tax year. The restriction was introduced following the April 2015 NRCGT regime to prevent non-residents from claiming PPR on a property they rarely occupied

Non-resident companies, double tax treaties, and NRL scheme interaction

Non-UK resident companies, trusts, and the interaction between NRCGT and income tax obligations require additional consideration:

• Non-resident companies — corporation tax, not CGT, from April 2019: From 6 April 2019, non-UK resident companies that dispose of UK property are subject to UK corporation tax on the gain — not CGT. The corporation tax rate (25% from April 2023) applies. Non-resident companies with UK property rental income (which was always UK-taxable) were brought into the corporation tax regime for UK property income from April 2020. From April 2019, gains on UK land and property are also corporation tax rather than CGT for companies. Non-UK resident companies must register with HMRC for corporation tax if they make a UK property disposal on or after 6 April 2019
• Double tax treaties — avoiding double taxation: The UK has double tax treaties with approximately 130 countries that generally prevent the same gain from being taxed in both the UK and the country of residence. Under most UK treaties, gains on UK immovable property (land and buildings) are taxable in the UK regardless of the treaty — so the UK generally retains taxing rights over UK property gains. The overseas landlord may be able to claim a credit in their home country for UK CGT paid, to avoid double taxation — the specific treaty terms determine how the credit works
• Non-Resident Landlords (NRL) scheme — income tax vs CGT: The Non-Resident Landlords (NRL) scheme is an income tax withholding mechanism — it applies to UK rental income received by non-UK resident landlords, not to capital gains. Registration under the NRL scheme (which allows a non-resident landlord to receive UK rental income gross, without UK tax withheld at source by the letting agent) is separate from NRCGT. An overseas landlord registered for the NRL scheme still has the same NRCGT reporting obligations on disposal of the property — NRL registration provides no CGT advantage
• Reporting on Self Assessment where also a Self Assessment taxpayer: A non-UK resident who is also registered for UK Self Assessment (for example, because they receive UK rental income and file annual tax returns) must report the property disposal in both the NRCGT return (within 60 days) and the annual Self Assessment return (for the relevant tax year). The CGT paid via the 60-day NRCGT return is credited against the total CGT liability shown on the Self Assessment return. Failure to include the disposal in the Self Assessment return is an error that HMRC may investigate

Frequently asked questions