Non-resident Capital Gains Tax rebasing: April 2015 rules and 60-day reporting
How non-resident UK property sellers use 5 April 2015 rebasing valuations to reduce CGT, report within 60 days, and claim property losses.
Short answer: If you sell a UK residential property whilst non-resident, you are only liable for UK Capital Gains Tax on the growth arising after 5 April 2015. By rebasing your property's acquisition cost to its open market value on 5 April 2015, you can legally exclude all pre-2015 capital growth from UK tax. You must report the disposal and pay any estimated CGT to HMRC within 60 days of completion.
Key points
- Non-residents only pay UK CGT on residential property gains accrued after 5 April 2015.
- The default calculation rebases the property's acquisition value to its market value on 5 April 2015.
- You have a strict 60-day deadline from completion to submit your NRCGT return and pay tax.
- In-year capital losses on other UK property sales can be set against gains to reduce or eliminate tax.
- Even if there is zero gain or an overall loss, you must still submit a 60-day return to HMRC.
How 5 April 2015 rebasing protects your historic capital growth
Until 5 April 2015, foreign residents enjoyed complete exemption from UK Capital Gains Tax on UK residential property sales. To prevent unfair retroactive taxation, the UK government introduced statutory rebasing under Schedule 4AA to the Taxation of Chargeable Gains Act 1992.
Under the default rebasing method, your base cost is reset to the property's open market value on 5 April 2015. All capital appreciation accumulated before that date is completely excluded from UK tax.
Sold a UK property from abroad? Report within 60 days...
HMRC requires non-resident sellers to report property disposals and pay estimated CGT within 60 days of legal completion. Matthew calculates your 2015 rebasing, applies available annual allowances and reliefs, and files your 60-day return directly with HMRC.
The three calculation methods for non-resident property sellers
When preparing your non-resident capital gains calculation, Matthew compares all three statutory methods to ensure you pay the absolute minimum legal tax:
NRCGT calculation methods comparison
| Method | How it works | When to use it |
|---|---|---|
| Default Rebasing (5 April 2015) | Deducts market value on 5 April 2015 from net sale proceeds | Best when the property experienced significant appreciation before April 2015 |
| Straight-line Time Apportionment | Calculates gain over total ownership and taxes only the post-5 April 2015 proportion | Best when post-2015 growth was substantially slower than historic pre-2015 growth |
| Retrospective Whole-gain Calculation | Calculates gain or loss over entire ownership period from original purchase date | Best when the property was sold at an overall net loss, generating allowable relief |
60-day reporting rules and non-resident penalties
Unlike UK residents who historically reported gains only on annual Self Assessment returns, non-residents must report every direct and indirect UK land disposal within 60 days of completion.
Failing to report within 60 days triggers an immediate £100 late penalty, followed by daily £10 penalties after 3 months, and 5% surcharges on unpaid tax after 6 and 12 months.
- Completion Date: The 60-day clock begins on the day of legal completion, not exchange of contracts.
- Nil-Gain Returns: Even if your calculation results in zero tax due or a loss, filing is still mandatory.
- Self Assessment Reconciliation: Your 60-day figures must reconcile precisely with the capital gains supplementary pages (SA108) of your annual tax return.
Frequently asked questions
What is 5 April 2015 rebasing for non-resident Capital Gains Tax?
Before 6 April 2015, non-UK residents were completely exempt from UK CGT on residential property disposals. When the non-resident CGT rules were introduced, HMRC established a default rebasing date of 5 April 2015. Only the uplift in market value between 5 April 2015 and the date of sale is taxable.
Do I need a professional RICS valuation for 5 April 2015?
HMRC does not strictly mandate a formal RICS red-book valuation at the time of filing, but you must use a justifiable, evidence-backed open market valuation. Having a professional surveyor valuation or documentary comparable evidence protects you from HMRC discovery assessments and penalties.
Can I choose straight-line apportionment instead of rebasing?
Yes. Non-resident sellers can make an irrevocable election to use straight-line time apportionment across the entire ownership period, or retrospective calculation over the whole ownership period (useful if the property sold for an overall loss across the entire hold period).
Can I offset property losses against property gains in the same year?
Yes. If you dispose of multiple UK residential properties in the same tax year, capital losses realised in that year can be set against your capital gains, reducing your net taxable gain and 60-day payment.
Written and reviewed by Matthew S Manderson CTA ATT AMIT
Chartered Tax Adviser (CTA), Association of Taxation Technicians (ATT), Association of Malta International Taxation (AMIT). General guidance only; tax treatment depends on individual facts.