There are special reporting requirements and the possibility of a tax bill when you sell your home in the UK and you live abroad. A Capital Gains Tax (CGT) charge on the sale of UK residential property by non-UK residents was introduced in April 2015. Only the amount of the overall gain relating to the period after 5 April 2015 is chargeable to tax.

In certain circumstances private residence relief may apply when a property is the owner’s only or main residence. For example, you don’t usually pay any tax for any tax years in which you, your spouse or civil partner spent at least 90 days in your UK home and the final 18 months of ownership usually qualifies for full tax relief.

If you are living abroad and sell a UK residential property you must inform HMRC within 30 days of transferring ownership (known as conveyancing). The notification must be made whether or not there is any non-resident CGT to be paid.

Any non-resident CGT charge applicable is applied at different rates according to whether the seller is a non-resident individual, a personal representative, a trustee or closely-held company or fund.

Planning points

Any non-resident CGT that is due must be paid within 30 days of the conveyance date.

If a taxpayer is registered for UK tax they can opt to pay the non-resident CGT due when they submit their regular self assessment return. There are penalties for failing to file the non-resident CGT return as well as for failing to pay any tax due on time.

Please call if you would like more information about this topic or an opinion on your tax status and any potential tax liability.