Capital gains tax charge on UK residential property owned by non-residents

Historically, only UK resident individuals and entities, together with temporary non-UK resident individuals and those operating via a UK permanent establishment, branch or agency, have been subject to UK capital gains tax (CGT) whilst non-UK residents have not. However, this was widened from 6 April 2013 to include disposals of UK dwellings owned by non-resident companies, partnerships and collective investment schemes where the dwelling was subject to the annual tax on enveloped dwellings (ATED) charge. For more on the ATED charge and the ATED-related CGT charge, see the Overview of the ATED regime guidance note (subscription sensitive).

From 6 April 2015, the CGT regime was extended to non-UK residents disposing of UK residential property.

The regime was further extended to cover non-residential UK property with effect from 6 April 2019, meaning all disposals of interests in UK land by non-residents are within its scope. For more details, see the Overview of the rules on disposals of interests in UK land by non-residents guidance note (subscription sensitive).

This guidance note gives an overview of the rules on UK residential property with a focus on the application to individuals.

Note that the rules also apply to land in Scotland and Wales. It is only stamp duty land tax (SDLT) and landfill tax which have been devolved to Scotland and Wales; CGT remains reserved by the UK Parliament.