Tell HMRC about Capital Gains Tax on UK property or land if you’re not a UK resident

If

Overview

From or6 landApril even2020 ifyou you:

• haveneed noto taxreport toand pay onyour thenon-resident disposal
• haveCapital madeGains aTax lossusing on the disposal
• areCapital registeredGains forTax Selfon Assessment

UK property andaccount landif includes:you’ve sold or disposed of:

• residential UK property or land (land for these purposes also includes any buildings on the land)
• non-residential UK property or land
• amixed use UK property or land
• rights to assets that derive at least 75% of their value from UK land (indirect disposals)

A ‘mixed use’ property is propertyone that has both residential and non-residential elementselements. (forFor example, a flat connected to a shop, doctor’s surgery or office)office.

You must report and pay non-resident Capital Gains Tax if you’re a:

• non-UK resident individual 
• rightspersonal torepresentative assetsof thata derivenon-UK atresident leastwho 75%has ofdied 
• non-UK theirresident valuewho’s fromin UKa landpartnership 

Direct disposals

AYou directmust disposalreport ofthe UKdisposal propertyonline oreven landif:

• you’ve isno wheretax ato personpay
• you’ve sellsmade ora disposesloss
• you’re ofregistered theirfor interestSelf inAssessment

If UKa property orwas land.

Therejointly areowned, differenteach ratesowner ofmust Capitaltell GainsHMRC Taxabout thattheir youown maygain needor toloss. pay,Special dependingrules onapply if theyou directgive disposala isUK forproperty residentialto oryour non-residentialspouse, UKyour propertycivil partner, or land.to charity.

ResidentialYou propertymust isreport definedand as:pay any non-resident Capital Gains Tax due within:

• a60 buildingdays usedof orselling suitablethe forUK useproperty asor aland dwelling
• propertiesif in the processcompletion ofdate beingwas constructedon or adaptedafter for27 useOctober as a dwelling2021
• the30 gardendays or grounds of suchselling athe building,UK includingproperty structuresor onland if the gardencompletion ordate grounds
• thewas rightbetween to6 acquireApril a2020 UKand dwelling26 ‘offOctober plan’2021

Non-residentialYou propertyneed orto landsubmit includes:

• commerciala property,non-resident forCapital exampleGains shopsTax orreturn offices
• agriculturalif land
• forests
• anyyou’ve othersold landor disposed orof UK property whichor island notup usedto as5 aApril residence

2020.

Indirect

Non-resident disposals

companies

AnFrom indirect6 disposalApril of2019, Corporation Tax rather than Capital Gains Tax will be charged on gains from UK property or land isfor whenall a non-resident personcompanies.

If sellsyou ordo disposesnot ofalready theirsubmit interesta inCorporation anTax assetreturn, thatyou derivesmust 75%register ora morenon-resident ofcompany itsfor grossCorporation valueTax.

Deadline fromfor UKreporting land.the Landdisposal forand thesepayment

From purposes27 alsoOctober includes2021, anyyou buildingsmust report onand thepay within land.60 days of completion of conveyance.

YouFor mustexample, haveif atyou leastcomplete athe 25%disposal intereston in1 thatNovember assetyou formust thereport saleand orpay disposalyour toCapital beGains anTax indirectby disposal.31 December.

‘ConnectedIf persons’the (suchcompletion asdate spouses,was civilbetween partners6 orApril some2020 descendants)and are26 alsoOctober included2021 whenyou workingmust outreport ifand apay personwithin has30 andays investment of atcompletion leastof 25%.conveyance.

You Findmay outhave moreto aboutpay theinterest definitionand of a ‘connectedpenalty person’if inyou CG73936do ofnot thereport HMRCand Capitalpay Gainson Manual.time.

If

Work out what you sellneed unitsto inpay

You’ll anneed investmentto fundwork whichout ownswhat UKyou land,need theto specialpay, rulesbased foron collectiveyour investmenttaxable vehiclesgains mightand apply.losses Theseif rulesyou’ve maysold meanor thatdisposed youof haveeither:

• a toUK payresidential Capitalproperty Gainssince Tax6 evenApril if2015
• a youUK ownnon-residential lessproperty thanor 25%land offrom the6 investmentApril fund.2019
• an Findindirect outdisposal moreof aboutUK collectiveland investmentfrom vehicles6 inApril CG73995P2019

You ofcan use the HMRCnon-resident Capital Gains ManualTax calculator.

The gainsif onyou’re indirecta disposalsnon-UK willresident beindividual workedwho’s outsold usingor thegiven valueaway your entire share of thea assetUK beingresidential disposedproperty. of,The rathercalculator thanwill thetake valueyou ofabout the10 underlyingminutes UKto land.use.

IndirectDo disposalsnot douse notthe applycalculator when:if:

• landyou used inall aor continuingpart tradeof isthe alsoproperty disposedto ofconduct business
• 2your orproperty, moregarden companiesand aregrounds soldtake atup themore samethan time0.5 byhectares
• you’re thean sameagent, investorstrustee andor thepersonal ‘propertyrepresentative
• you’ve richnesssold test’or wouldgiven notaway applya ifpart theshare disposalsof wereyour treatedUK asresidential oneproperty
• you’ve transactionsold —or findgiven outaway moreUK informationnon-residential aboutproperty ‘propertyor richness’land
• you’ve inmade CG73934an ofindirect thedisposal HMRCof CapitalUK Gains Manual land

DeadlinesHow forto reportingreport adisposals

For disposalproperties andthat payingare whatdisposed youof owe

Youfrom 6 April 2020 you must report and pay anyusing the Capital Gains Tax due on UK residential property within:

• 60account. daysYou ofwill sellingbe theable propertyto ifreport multiple disposals with the same completion date was on orone afterreturn.

  When 27you Octoberreport 2021

• 30a daysdisposal, ofyou sellingneed theto propertyinclude ifa thecomputation completionof dateyour wastaxable betweengains 6and Aprillosses 2020along andwith 26your Octoberreturn.

  Trustees 2021

of non-UK resident trusts

Reporting

If disposalsyou’re madea ontrustee of a non-UK resident trust, you must report the disposal of UK property or afterland, 6even Aprilif 2020

Useyou anhave onlineno tax to pay. If you have no tax to pay, you must use a Capital Gains Tax on UK property accountpaper form to report yourthe disposal.

If You’llyou need to haveamend ayour GovernmentCapital GatewayGains userTax IDreturn

You andcan password.amend Ifdetails youof do not have a userdisposal ID,by youusing canyour Capital createGains oneTax theon firstUK timeproperty you register.account.

Penalties

You’llYou alsohave need60 the:

• addressdays andfrom postcodethe date of theconveyance property
• dateto youreport gotyour thedisposal property
• dateand youpay exchangedany contractstax whendue. youYou’ll wereget sellinga (orlate ‘disposing’filing of)penalty theand property
• datebe youcharged stoppedinterest beingif theyou property’sdo ownernot (completiondo date)
• valuethis ofby the property60-day whendeadline.

  If you gotmiss it

the deadline by:
• valueup ofto the6 propertymonths, when you soldwill orget disposeda penalty of it£100
• costsmore ofthan buying,6 sellingmonths, oryou’ll makingget improvementsa tofurther thepenalty property
• details of any£300 taxor reliefs,5% allowancesof orany exemptionstax you’redue, entitledwhichever tois claim greater
• propertymore type,than if12 you’remonths, notyou’ll get a residentfurther penalty of the£300 UKor 5% of any tax due, whichever is greater

Report a disposal

If you cannothave reportto online

Youpay canany usenon-resident a Capital Gains Tax onwithin UKthe propertysame form60-day toperiod, reportlate yourpayment disposalpenalties byand post.interest may also be due if you miss the deadline.

HMRC willIf sendany younon-resident aCapital 14-digitGains paymentTax referenceremains numberunpaid startingafter with31 ‘x’January after you’vethe reportedend yourof disposal.the You’lltax needyear thatof referencethe numberdisposal, toa paylate anypayment taxpenalty youof owe5% beforeof the deadline.tax outstanding will be charged.

Using

Use aan tax agent

If you would like an agent to report the sale or disposal of UK property or land to HMRC on your behalf, you must:

1. Setmust upfirst anset onlineup a Capital Gains Tax on UK property account.

2. GiveYou will need to provide the agent you would like to manage your account with your Capital Gains Tax on UK property account number and country of residence,residence.

   Your soagent theywill cansend email you a link by email to request access to your Capital Gains Tax on UK property account.

3. AcceptIf you accept the authorisation requestrequest, in the email.

Your agent will then be able to report and manage yourthe account and returns on your behalf.

ReportingSelf disposalsAssessment madetax on or before 5 April 2020returns

If you haveneed soldto complete a UKSelf propertyAssessment ortax landreturn before 6 April 2020 you must completestill anfill onlinein non-residentthe Capital Gains Taxsection of your tax return form.

You’llfor needthe to:

• submityear aof separatethe returndisposal, forunless eachthe disposalgain andis anyexempt amendmentsdue youto make
• givePrivate detailsResidence Relief.

  Direct disposals of yourUK taxableproperty gainsor land

  You must tell HMRC and lossesmay forhave eachto disposalpay inCapital theGains ‘OtherTax information’when sectionyou sell or dispose of thean returninterest form,in UK property or emailland.

  There themare todifferent non-residentcgt.spt@hmrc.gov.ukrates afterof youCapital haveGains submittedTax theto returnpay form

Ifdepending youon decidewhether tothe deferdirect paymentdisposal is for UKresidential property or landnon-residential soldUK onproperty or beforeland.

Residential 5property Aprilis 2020,defined you should:as:

• includea detailsbuilding ofused theor taxablesuitable gainsfor anduse lossesas relatinga todwelling
• properties in the disposalprocess withof yourbeing Selfconstructed Assessmentor returnadapted for theuse taxas year following a saledwelling
• makethe agarden paymentor asgrounds part of yoursuch normala endbuilding, ofincluding yearstructures Selfon Assessmentthe payment

Usinggarden aor taxgrounds

the agent

Toright give HMRC limited authorisation to dealacquire directlya withUK yourdwelling agent‘off or adviser, email: non-residentcgt.spt@hmrc.gov.uk.

plan’

YourNon-residential emailproperty willor needland to include:includes:

• ‘Non-residentcommercial CGTproperty, onfor UKexample Propertyshops or Land’ in the titleoffices
• youragricultural name and addressland
• yourforests
• any taxother referenceland number,or forproperty examplewhich youris Uniquenot Taxpayerused Reference
• theas submissiona Caseresidence

A ID‘mixed numberuse’ orproperty youris non-residentone Capitalthat Gainshas Taxboth referenceresidential startingand ‘NRCGT’,non-residential ifelements. youFor haveexample, them

thea nameflat andconnected addressto ofa theshop, persondoctor’s surgery or organisationoffice.

Indirect youdisposals wantof toUK authorise

property or land

LimitedYou authorisationmust onlytell appliesHMRC and may have to non-residentspay Capital Gains Tax upwhen toyou andmake includingan 5indirect Aprildisposal 2020.of UK land.

YouLand dofor notthese needpurposes limitedalso authorisationincludes ifany youbuildings haveon alreadythe authorisedland.

When someonean toindirect dealdisposal withoccurs

An HMRCindirect ondisposal youroccurs behalfwhen abouta yournon-resident Incomesells Tax.

Ifshares thein propertya company that wasderives disposed75% wasor jointlymore owned

Youof mustits reportgross theasset disposalvalue andfrom giveUK detailsland, ofand yourthe ownperson gainmaking orthe loss.

Specialdisposal ruleshas applyan ifinvestment youof giveat aleast UK25% propertyin to:

• yourthat spouse
• yourcompany civilwhich partner
• charity

Non-residentholds companiesUK makingland aas disposal

an investment.

Non-resident‘Connected companiespersons’ pay(such Corporationas Taxspouses, oncivil gainspartners fromor UKsome landdescendants) andare propertyalso disposalsincluded andwhen reportworking themout onif a Corporationperson Taxhas return.

You’llan needinvestment toof registerat aleast non-resident25%. companyFind forout Corporationmore Taxabout ifthe youdefinition doof not already submit a Corporation‘connected Taxperson’ return.

Trusteesin CG73936 of non-UKthe residentHMRC trustsCapital thatGains make a disposal

Manual.

If you’reyou asell trusteeunits ofin aan non-UKinvestment residentfund trustwhich thatowns becomeUK liableland, tothe payspecial non-residentrules Capitalfor Gainscollective Tax,investment youvehicles mustmight beapply. registeredThese withrules HMRCmay beforemean that you canhave createto anpay online Capital Gains Tax oneven UKif propertyyou account.own less than 25% of the investment fund. Find out more about whenabout andcollective howinvestment tovehicles registerin aCG73995P trustof the HMRC Capital Gains Manual.

IfThe gains on indirect disposals will be calculated using the trustvalue doesof the asset being disposed of, rather than the value of the underlying UK land.

Indirect disposals do not needapply towhen:

• land registerused within HMRCa andcontinuing there’strade nois taxalso todisposed payof
• 2 youor mustmore stillcompanies reportare sold at the disposalsame usingtime aby Capitalthe Gainssame Taxinvestors onand UKthe property formrichness test would not apply if the disposals were taken as one transaction — read more information about property richness.

Temporary non-residents who make a disposal

Different rules apply if you’re temporarily non-resident and make disposals during a tax year when you were either:

• not resident in the UK
• overseas as part of a split year

If you meet the temporary non-resident rules then the portion of gain not charged to non-resident Capital Gains Tax will come within the scope of UK Capital Gains Tax for the year, or period of return to the UK.

If you do not meet the temporary non-resident rules, there will not be an additional UK Capital Gains Tax charge for the earlier disposal when you return to the UK.

ReadIndividuals temporary non-residents and Capital Gains Tax (Self Assessment helpsheet HS278) to find out more about the treatment of Capital Gains Tax during a period abroad and the temporary non-resident rules.

If you’re an individual (including trustees and executors, or personal representatives of a deceased person) you are entitled to the Capital Gains Tax Annual Exempt Amount. (AEA). You can only use the AnnualAEA Exempt Amount once in a tax year, even if it was a split year.

Personal representatives whoof make a disposal for a deceased person who lived abroad

If you’re the personal representative of a deceased person who lived abroad, you’ll need to report the disposal to HMRC if:HMRC.

• the

  The deceasedAEA madeis aavailable disposalfor beforedisposals theyin diedthe thatsame hastax notyear beenas reportedthe todeath HMRC

• youor disposethe offollowing UK2 propertytax oryears.

  Keep landrecords whileof managingwhat andyou sellingreport assetsto for the estate

HMRC

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HMRC.

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  Disposals Taxpayermade Referencebefore 6 April 2020

  For properties that wasare useddisposed toof registerup theto trust5 withApril HMRC

You2020 you must usecomplete a separate online non-resident Capital Gains Tax onreturn UKfor propertyeach formdisposal, to:and any amendments you make.

• use

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• amendyou achoose reportto thatdefer haspayment alreadyfor beena submittedproperty online

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Use Gainsa section for the tax yearagent followingor theadviser

To sale and give detailsHMRC oflimited yourauthorisation disposal,to unlessdeal thedirectly propertywith was your mainagent homeor andadviser, youemail: qualify for Private Residence Reliefnon-residentcgt.spt@hmrc.gov.uk.

ReadLimited non-residentauthorisation Capitalmeans Gainsthis forauthorisation landonly andapplies propertyto inmatters theconcerning UKnon-residents (SelfCapital AssessmentGains helpsheetTax HS307)up to find5 outApril more2020 aboutand whennot you need to reportthe aCapital disposalGains Tax on yourUK Selfproperty Assessment tax return.account.

Keep records

You do not need tolimited keepauthorisation recordsif toyou supportalready thehave gainsappropriate orauthorisation lossesin youplace reportfor someone to HMRC,deal includingwith anyHMRC calculationson thatyour you’vebehalf used.about your Income Tax.