Non-Resident Landlord Capital Gains Tax: The 60-Day CGT Reporting Rule

Non-resident landlords who sell their UK property face a reporting deadline that most domestic sellers never encounter: you must report the disposal and pay any capital gains tax due to HMRC within 60 days of completion. Miss that window and penalties start immediately, regardless of whether you still owe tax after your annual Self Assessment.

Why Non-Residents Pay CGT on UK Property

Since April 2015, non-UK residents have been liable for capital gains tax on direct disposals of UK residential property. Before that date, non-residents selling UK homes paid nothing. The rules were extended to cover all UK land and property (including commercial) from April 2019.

For residential property owned before 6 April 2015, the standard calculation uses its market value on 5 April 2015. For non-residential property or land and indirect disposals owned before 6 April 2019, the standard calculation uses the market value on 5 April 2019. Other calculation methods can use time apportionment or the gain over the whole ownership period, depending on the type of disposal.

Current CGT rates for non-resident individuals on residential property disposals are 18% (basic-rate band) and 24% (above the basic-rate band) for the 2026–27 tax year. The annual exempt amount (£3,000 for 2026–27) applies if you haven't used it elsewhere.

The 60-Day Reporting Requirement

Within 60 days of the completion date (not the exchange date), you must:

1. Report the disposal through HMRC's Capital Gains Tax on UK property service or by post using the UK property form
2. Pay the estimated CGT due with the return

This is a standalone return separate from your annual Self Assessment. Even if you already file SA100/SA105/SA109 for your rental income, the 60-day property disposal return is a separate obligation with its own deadline.

The return asks for the date you stopped owning the property, which is the completion date. The 60-day clock runs from completion, not exchange.

Calculating the Gain

The basic computation for a non-resident landlord selling a UK property:

Sale proceeds minus the relevant base cost (the original acquisition cost or, where the rebasing rules apply, the market value at the relevant date) and allowable acquisition, disposal, and enhancement costs = gain or loss.

For a residential property owned before 6 April 2015, the standard method is rebasing to its market value on 5 April 2015. You can instead use time apportionment or calculate the gain over the whole ownership period. For non-residential property or land and indirect disposals owned before 6 April 2019, rebasing to the market value on 5 April 2019 is standard; the alternative is to calculate the gain over the whole ownership period.

The standard rebasing method excludes pre-date growth from the calculation. If you choose an alternative calculation method, check its effect before filing; an election to use an alternative method can be irrevocable.

Interaction with the NRLS

The Non-Resident Landlord Scheme handles rental income tax; CGT on a sale is a completely separate tax regime. Having NRL1 gross payment approval doesn't affect your CGT liability or the 60-day reporting requirement.

However, selling the property doesn't immediately end your NRLS obligations. Your letting agent must still file their final NRLQ for the quarter in which the tenancy ends (which may be before or at completion), issue you a final NRL6, and submit the NRLY annual return. Rental income up to the tenancy end is still taxable through Self Assessment.

What If You Sell at a Loss

You still must file the 60-day return even if you made a loss on the property. No tax is due, but the reporting obligation exists regardless. The loss can be carried forward and set against future UK property gains.

Penalties for Late Filing

Late filing can trigger a penalty, and late payment can lead to interest and a further penalty. Check HMRC's current guidance for the amounts and timing that apply to your disposal.

These penalties apply even if your annual Self Assessment ultimately shows the same gain and tax — the 60-day return is a separate compliance obligation, not just an early estimate.

Getting It Right

The 60-day deadline is tight, especially for non-residents dealing with international conveyancing and currency considerations. Start gathering your cost records (purchase price, stamp duty receipt, invoices for capital improvements, previous valuations) well before you list the property.

Our Non-Resident Landlord Scheme guide covers the end-to-end NRLS process including the exit sequence when you sell — from final rental period withholding through the 60-day CGT return and the wind-down of agent reporting obligations.

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