Capital Gains Tax - UK Non Resident Selling Property or Land
When is CGT chargeable as a non-resident on UK property?
If you are a non-resident who has sold or disposed of UK property or land, then it is likely that you were required to submit a Capital Gains Tax return within 60 days of the date of conveyance and pay any capital gains tax arising at the time of filing the tax return.
Land for these purposes also includes any buildings on the land.
Your Self Assessment tax return will also need to include your non-resident capital gains.
Before the 6th of April 2020 only non-UK residents were required to file a capital gains tax return which was more commonly referred to a Non-Resident CGT return (NRCGT).
Non-UK residents who sell a UK property are required to report the disposal of HMRC within 60 days and pay any capital gains tax arising.
UK Properties sold after 6 April 2015 the capital gain is generally calculated as follows by:
Rebasing as at 5th April 2015
Original cost on a time apportionment basis
Or, by calculating the gain over the whole period
You can choose whichever method is most beneficial for you
You must report the disposal online the even if:
no tax to pay
made a loss
registered for Self Assessment
You must report and pay any non-resident Capital Gains Tax due within:
60 days of selling the UK property or land if the completion date was on or after 27 October 2021
30 days of selling the UK property or land if the completion date was between 6 April 2020 and 26 October 2021
You need to submit a non-resident Capital Gains Tax return if you have sold or disposed of UK property or land up to 5 April 2020.
Who is chargeable
You are within the scope of the charge if you are:
non-resident individual
UK resident individual meeting split year conditions and the disposal is made in the overseas part of the tax year
personal representative of a non-resident who has died
non-resident who’s in a partnership
non-resident trustee
If a property was jointly owned, each owner must tell HMRC about their own gain or loss. Special rules apply if you give a UK property to your spouse, your civil partner, or to charity.
When do temporary non-resident rules apply?
Different rules apply if you are temporarily non-resident and make disposals during a tax year when you were either:
not resident in the UK
overseas as part of a split year
If you are within the temporary non-resident rules, the portion of the overall gain on the disposal that is not within the scope of the non-resident capital gains rules is likely to be within the scope of the temporary non-residence rules.
If you are not within the temporary non-resident rules, there will not be an additional UK Capital Gains Tax charge for the earlier non-resident Capital Gains Tax disposal when you return to the UK.
GM Tax also offers the following services:
GM Tax also offers the following services:
- Tax planning advice and guidance with regards to your residency status in Australia and the UK, eligibility for split year treatment and also domicile status in the context of Inheritance Tax (IHT) planning.
- Preparation of UK tax returns, with all returns submitted to HM Revenue electronically where possible.
- Advice on the tax position where a property in the UK is being let while a taxpayer is living overseas.
- Preparation of Australian tax returns, with all returns submitted to the ATO electronically where possible.
- Assistance to ensure UK or overseas sourced income of those who are non-residents of the UK is properly taxed and is not taxed twice, or double taxed.
- This last point is particularly relevant to those who have UK or overseas sourced income or capital gains which may also be subject to tax in the country in which the taxpayer is now resident.