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    TaxKilnUK tax guidance
    TaxKilnUK tax guidance

    Moving Abroad → NRCGT + temporary non-residence

    NRCGT + Temporary Non-Residence — UK Property Gains for Non-Residents

    Non-Resident CGT applies to UK residential property disposals since 6 April 2015 (Finance Act 2015) and all UK land + property + property-rich-company shares since 6 April 2019 (Finance Act 2019). 60-day reporting + payment required even where no CGT due. Temporary non-residence (TCGA 1992 s.10A) catches gains realised during a non-residence period of fewer than 5 full tax years if you return — gains wash back into year of return.

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    Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact HMRC. Read our editorial scope →

    In plain English

    Non-residents are NOT generally subject to UK CGT on UK assets — but UK land and property are the big exception. Since 6 April 2015 (residential) and 6 April 2019 (commercial + property-rich shares), non-residents must pay UK CGT on disposals of UK property + must file a 60-day NRCGT return with payment-on-account, regardless of any other SA filing position. Separately, the temporary non-residence rule (TCGA 1992 s.10A) is a trap for people who think they can leave the UK for a tax year or two, sell their UK shares CGT-free, then come back. If you return to UK residence within 5 full tax years of departure, gains realised during the non-residence period on assets you held BEFORE leaving wash back into the year of return + are taxed at UK CGT rates applicable to that year.

    How it works

    NRCGT residential — rebasing + computation

    Since 6 April 2015, non-residents disposing of UK residential property are within scope of UK CGT on the gain. Default rebasing election available: the property is treated as acquired at 5 April 2015 market value, so only post-April-2015 growth is taxable. Alternative elections: straight-line apportionment of the whole-period gain, or pure historic-cost gain if it's lower. Rates: 18% (basic-rate band) / 24% (higher-rate band) for 2025/26 residential gains. Annual Exempt Amount £3,000 (2025/26) available. PPR relief continues to apply for periods of qualifying occupation — but non-residents face the tightened 'qualifying occupation' rules under FA 2014 s.222B (must spend ≥90 nights in the property in the tax year to qualify it as PPR for that year while non-resident).

    NRCGT commercial + property-rich shares — April 2019 extension

    Finance Act 2019 extended NRCGT to all UK land (commercial + bare land + mixed-use) AND to shares in 'property-rich companies' — companies where ≥75% of asset value derives from UK property (TCGA 1992 Sch 4AA). Rebasing to 5 April 2019 market value available by election for direct property; commercial property gains taxed at 10%/20% rates (2025/26 basic/higher). Property-rich-share disposals: 25% interest threshold + 2-year lookback for groupings. Worked computation often complex for groups; specialist advice warranted for SHARES in property-rich companies — direct property disposals usually self-servable.

    60-day NRCGT reporting + payment

    Critical procedural trap. Any non-resident disposing of UK land/property MUST file a NRCGT return AND pay CGT due within 60 days of completion (Finance Act 2020 Sch 2). Applies even if: • No tax due (e.g. covered by PPR + AEA) • You're already in Self Assessment • The gain is a loss File via Government Gateway 'Report and pay CGT on UK property' service. Penalties: £100 immediately + daily £10 after 3 months (capped £900) + 5%/10% tax-geared at 6+ and 12+ months. Late-payment interest from day 61. The gain still needs to be reported on your annual SA return — the 60-day return is a payment-on-account mechanism, not a final return.

    Temporary non-residence catch-up (s.10A TCGA 1992)

    Trap for people who think a short non-residence trip can wash UK CGT. Rules (TCGA 1992 s.10A as amended): If ALL of the following apply, gains realised during non-residence on assets you held BEFORE leaving are taxed in the year of return: • You were UK-resident in at least 4 of the 7 tax years before departure • You return to UK residence within 5 full tax years of becoming non-resident • The gain is on an asset acquired before departure The 'wash-back': gains treated as accruing in the year of return; taxed at that year's CGT rates; using that year's AEA. Result: deliberately moving abroad for 1-3 years to dispose of UK shares CGT-free DOES NOT WORK if you return within 5 full tax years. Clean exit: 5 full UK tax years of non-residence (excluding split-year departure year) before returning.

    Who this applies to + key conditions

    Statute + manual references

    Primary: Finance Act 2015 (NRCGT residential extension); Finance Act 2019 (NRCGT commercial + property-rich shares); TCGA 1992 s.10A (temporary non-residence)

    Related: TCGA 1992 ss.222-226B (Principal Private Residence relief); TCGA 1992 Schedule 4ZA (NRCGT computation rules + rebasing elections); TCGA 1992 Schedule 4AA (property-rich company test); Finance Act 2020 Schedule 2 (60-day reporting from 27 October 2021; previously 30 days from 6 April 2020)

    HMRC manual: CG (Capital Gains Manual) CG73700+ (NRCGT) + CG26100+ (s.10A)

    Common mistakes + traps

    Worked example

    David (UK to Dubai October 2025) selling London flat July 2027

    David bought a London flat for £450k in March 2010. April 2015 market value £620k (rebasing). He emigrates 1 October 2025 (Case 1 split-year). He sells the flat July 2027 for £750k. He lived in it as PPR until October 2025; rented from October 2025 to July 2027 (21 months). He returns to UK residence April 2030 (4.5 tax years after departure).

    1. Step 1 — NRCGT scope: David is non-resident at disposal (July 2027) → NRCGT applies. Residential, so April 2015 rebasing available.
    2. Step 2 — Gain computation with April 2015 rebasing: Proceeds £750k - April 2015 MV £620k = £130k post-April-2015 gain.
    3. Step 3 — PPR analysis: Pre-departure occupation 2015-2025 (~10.5 years from rebasing) qualifies as PPR; post-departure period to 5 April 2026 might qualify if 90+ nights occupation (unlikely here); final 9 months always qualifies. Qualifying months: 126 (10.5yrs to Oct 2025) + 9 (final 9 months Oct 2026 - July 2027) ≈ 135/147 months. PPR fraction: 135/147 = ~92%. PPR relief: £130k × 92% = ~£119,400. Chargeable gain: £130k - £119,400 = £10,600.
    4. Step 4 — AEA + rates: AEA 2027/28 (assume £3k still) → £10,600 - £3,000 = £7,600. Higher-rate residential 24% = £1,824.
    5. Step 5 — 60-day return: file via gov.uk by mid-Sept 2027 + pay £1,824.
    6. Step 6 — s.10A check: David returns April 2030 = within 5 full tax years of October 2025 departure. BUT the flat was disposed of while non-resident + NRCGT already applied + tax already paid = no s.10A double-charge (NRCGT regime carved out). s.10A would only catch e.g. UK share disposals during non-residence that escaped UK tax at the time.

    Outcome: David pays £1,824 NRCGT via 60-day return July 2027. Disposal also reported on 2027/28 SA. No s.10A catch on the property because NRCGT regime already captured it. If David had ALSO sold UK shares during non-residence (e.g. AIM portfolio), those gains WOULD be caught by s.10A on his April 2030 return.

    How this connects to the rest of the framework

    Statutory Residence Test →

    Non-residence under SRT is precondition for NRCGT scope; '5 full tax years' for s.10A clean exit is counted using SRT residence outcomes per year.

    Leaving-UK procedures →

    60-day NRCGT return is separate from annual SA; SA109 split-year doesn't affect 60-day duty.

    UK source income (non-resident) →

    UK rental income (CGT base/improvement-cost tracking) feeds the future NRCGT computation; Section 24 rental treatment is parallel income regime.

    Returning to the UK →

    On return within 5 full tax years, s.10A catch-up may apply — see returning-UK page for mechanics + FIG regime interaction.

    Frequently asked questions

    What happens if I miss the Self Assessment deadline?+
    The Self Assessment deadline is 31 January (online filing) for the previous tax year. Miss it and HMRC apply an automatic £100 penalty. Beyond that: £10 per day from 3 months late (capped at £900), 5% of tax due at 6 months late, and another 5% at 12 months late, under Schedule 55 of the Taxes Management Act 1970. If you have a genuine reason (serious illness, bereavement, technical issue with HMRC's systems) you can appeal with evidence; HMRC accepts reasonable excuse appeals in most genuine cases.
    Do I need an accountant or can I file Self Assessment myself?+
    Legally you can file Self Assessment yourself via gov.uk for free, most simple sole-trader returns (single income source, basic expenses) are realistic to self-file. An accountant adds real value when: your trading profit is above £40,000 (extraction-strategy decisions matter), you have multiple income streams (PAYE + self-employment + property + dividends), you've crossed the £90,000 VAT threshold, you're considering incorporation, or you have an HMRC enquiry. Expect to pay £400-£1,500/year for a typical sole-trader accountant; the cost is itself a deductible expense.
    How do payments on account work?+
    When your Self Assessment tax bill exceeds £1,000 for the first time, HMRC requires payments on account toward NEXT year's tax. Half the current bill is due 31 January (alongside the current bill); the other half is due 31 July. So your first January after crossing the threshold can hit with a double-bill: last year's balance + first payment on account. Adjust via Form SA303 if you expect next year's income to drop substantially. Payments on account don't apply if more than 80% of your tax is collected via PAYE.
    I sold my UK rental in 2024 while abroad — when's the deadline?+
    60-day NRCGT return + payment-on-account due within 60 days of completion (Finance Act 2020 Sch 2). The gain ALSO needs to go on your 2024/25 annual SA return. If you missed the 60-day deadline, file ASAP — penalties: £100 immediate + £10/day after 3 months (max £900) + 5%/10% tax-geared. Voluntary disclosure before HMRC opens enquiry reduces penalty exposure materially.
    Does NRCGT apply to UK shares (not property)?+
    Generally no — UK CGT on UK shares is OUT of scope for non-residents (subject to s.10A temporary non-residence catch). The exception: shares in 'property-rich companies' (≥75% of value from UK property) where you hold ≥25% interest — these ARE within NRCGT under FA 2019. Pure trading-company UK shares = no UK CGT for non-residents at disposal (subject to s.10A).
    How does PPR work for a non-resident landlord selling former home?+
    PPR continues to apply for the period of qualifying occupation. Periods of UK absence (working abroad / non-residence) generally don't qualify UNLESS the FA 2014 s.222B test is met — must spend ≥90 nights in that property in the tax year to keep PPR status for that year while non-resident. Final 9 months always qualifies regardless. Letting Relief mostly abolished from April 2020 — only available where owner-occupier was in occupation alongside tenant.
    If I leave the UK for 4 tax years + sell UK shares + come back — can I avoid CGT?+
    No. TCGA 1992 s.10A catches you. You were UK-resident in 4+ of the 7 pre-departure years → qualifying leaver. You return within 5 full tax years → catch-up triggered. The share gains realised during non-residence on shares you held pre-departure are washed back into the year of return + taxed at that year's CGT rates. You need 5 FULL tax years of non-residence (excluding the split-year departure year) for clean exit on pre-departure assets.

    Free + regulated-body resources

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