Capital Gains Tax for UK Non-Residents

George Osborne, Chancellor of The Exchequer, announced today in his Autumn Statement that Capital Gains Tax (CGT)  would apply to the sale of property owned by non-residents from April 2015. The Chancellor said, “Britain welcomes investment from overseas but it’s not right that those who live here have to pay CGT, but those who are non-residents do not.”

Under the current rules, which are advantageous to UK non-residents, non-residents do not pay CGT on sale of their UK owned property whilst UK residents must pay CGT on the sale of their second homes.

UK residency is determined by a number of tests which factor in the amount of time a non-UK citizen spends in the UK, their activities whilst in the UK and their ties to the UK. Broadly if you do not work in the UK and are in the UK less than 90 days a year (working less than 30 of those days in the UK) you will be non-resident. More specific rules apply however and are governed by the Finance Act 2013.

The current rates of CGT are 18% or 28% (liability depends on your total UK tax liability) on of the profit proceeds on sale of a property.


For more information about the new CGT rules or UK residency for tax purposes, please contact and we can assist in recommending a trusted professional advisor for your needs.

Disclaimer: Nothing in this piece should be deemed as professional advice.