Selling a London flat from the Gulf is simpler than buying one, with one exception: the tax return that is due within 60 days of completion, whether or not any tax is payable. This guide explains what a non-resident pays in capital gains tax on a UK home in 2026, how the gain is worked out, the 60-day rule, the sale process from abroad, and how the proceeds get home.
Tax
Selling UK property as a non-resident: capital gains tax, the 60-day return and getting the money home
Capital gains tax for non-residents selling UK property
A non-resident selling a UK home pays UK capital gains tax on the gain since purchase, or since April 2015 if owned then, at 18% within the basic-rate band of £37,700 and 24% above, after the £3,000 annual exempt amount. On the worked example, a flat bought for £1,000,000 and sold for £1,300,000, the tax is £29,178, about 2.2% of the sale price. The catch: the return and payment are due within 60 days of completion, even when no tax is owed.
Since April 2015 a person who lives outside the UK pays UK capital gains tax on the sale of UK residential property, and since April 2019 on all UK land and property. Living in the Gulf, where there is no capital gains tax, does not change this: the tax follows the property. For a flat owned since before April 2015, only the gain since the April 2015 value is charged, which is why a valuation at that date is worth obtaining for older holdings.
How non-resident capital gains tax on UK property is calculated
Sale price, less the purchase price, less the costs of buying and selling, less the cost of improvements. Allowable costs include the stamp duty paid on purchase, both sets of legal fees, the agent’s selling fee, surveys, and capital works such as a new kitchen or an extension, but not repairs or decoration, which belong to the rental accounts. An annual exempt amount, £3,000 in 2026-27, comes off the gain. The rate is 24% for a higher-rate taxpayer and 18% on the part of the gain that falls within the basic-rate band, currently £37,700, for a seller with little or no other UK income in the year.
A worked example
A flat bought in 2019 for £1,000,000 with £100,000 of stamp duty and £10,000 of legal and survey costs, improved with a £30,000 kitchen, sold in 2026 for £1,300,000 with £26,000 of agent and legal fees. The gain is £134,000. Less the £3,000 exemption, £131,000 is taxable. For a seller with no other UK income, the first £37,700 is taxed at 18% (£6,786) and the remaining £93,300 at 24% (£22,392): £29,178 in all, about 2.2% of the sale price. A seller who also has UK rental profit above the basic-rate band pays 24% on the whole taxable gain, £31,440.
The 60-day return for non-resident UK property sales
Within 60 days of completion the seller must file a UK property disposal return and pay the tax. The return is required even when there is no tax to pay or the sale made a loss, and late filing is penalised. Your solicitor knows the completion date; your accountant files the return. We put the two in touch before exchange so the 60 days are not spent finding the purchase file.
Can a non-resident claim private residence relief on a UK home?
Rarely. The relief that exempts a person’s main home is available to a non-resident only for tax years in which they, or their spouse, spent at least 90 nights in the property, and the flat has to have been their main residence. A family that visits for six weeks a summer does not qualify; a family that lived in London for several years before moving to the Gulf may qualify for those years. It is worth checking before the sale, not after.
The sale from abroad
Timing and presentation decide the price. We advise on when to sell against the market and the tenancy, prepare the flat, appoint the selling agent and manage the marketing, and the solicitor handles the contract, the Energy Performance Certificate and the lease pack. A tenant in place can stay (the buyer takes the tenancy) or be given notice on the sale ground under the new tenancy rules, which sets the timetable.
Signing the sale and getting the money home from the UK
The seller signs by power of attorney if abroad; completion funds go from the buyer’s solicitor to yours, and from yours to any account you name, in the UK or the Gulf. There is no exchange control, and the money can leave the day it arrives.
Company sellers and inheritance tax on UK property
A company pays corporation tax on the gain instead, at the company rates, and the same 60-day return applies in its own form. Separately, UK property is within UK inheritance tax whoever owns it and wherever they live, directly or through a company, which is the reason the holding structure is decided with the next generation in mind. Our guide on inheritance tax covers that.
Related guides: Gifting a London property to your children, An English will for a London property and Moving dirhams and riyals into sterling for a London purchase.
Sources: Capital Gains Tax for non-residents: UK residential property (GOV.UK) · Capital Gains Tax rates (GOV.UK). Checked against GOV.UK on 13 October 2026. Rates and allowances change at Budgets. General information, not tax advice; a seller’s position is for their accountant to confirm before exchange. Figures verified 13 October 2026.
Frequently Asked
Questions about capital gains tax for non-resident sellers
A non-resident must report the sale of UK residential property to HMRC and pay the capital gains tax within 60 days of completion, whether or not there is a gain to pay tax on.
Yes, if you owned the property on 5 April 2015; rebasing to that value is the default and usually reduces the gain for an older purchase.
Through the solicitor to a UK or international account in your name, then converted; our guide on currency transfers explains the rate and the paper trail.
18% on the part of the gain that falls within the basic-rate band, currently £37,700, for a seller with little or no other UK income in the year, and 24% above that. An annual exempt amount of £3,000 in 2026-27 comes off the gain first. A seller with UK rental profit above the basic-rate band pays 24% on the whole taxable gain.
No. Since April 2015 a person living outside the UK pays UK capital gains tax on the sale of UK residential property, and since April 2019 on all UK land and property. The tax follows the property, not the seller’s country of residence.
The stamp duty paid on purchase, both sets of legal fees, the agent’s selling fee, surveys, and capital works such as a new kitchen or an extension. Repairs and decoration are not deductible from the gain; they belong to the rental accounts.
In the worked example, a flat bought in 2019 for £1,000,000 with £100,000 of stamp duty, £10,000 of legal and survey costs and a £30,000 kitchen, sold for £1,300,000 with £26,000 of fees, has a gain of £134,000, or £131,000 after the exemption. With no other UK income the tax is £29,178, about 2.2% of the sale price; a higher-rate seller pays £31,440.
Rarely. A non-resident gets the main-home relief only for tax years in which they, or their spouse, spent at least 90 nights in the property, and it must have been their main residence. Six weeks a summer does not qualify; several years living in London before moving to the Gulf may qualify for those years. Check before the sale.
The company pays corporation tax on the gain at the company rates instead, and the same 60-day return applies in its own form. UK property remains within UK inheritance tax whoever owns it and wherever they live, directly or through a company; our guide on inheritance tax covers that.
No. The seller signs by power of attorney if abroad. Completion funds go from the buyer’s solicitor to yours and then to any account you name, in the UK or the Gulf. There is no exchange control, and the money can leave the day it arrives.
