Client Background

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A Chinese national, always non-UK resident, purchased a UK residential property in July 2014. The property has been let continuously since purchase (the client has never lived in it). He is now planning to sell the UK property and  asked tax implications the reporting and payment requirements?

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The challenge

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Many non-residents assume UK CGT does not apply, or that reliefs for “homes” might reduce the gain. However, the UK introduced a specific CGT regime for non-residents selling UK residential property, with strict reporting deadlines and special rules for measuring the taxable gain where the property was owned before 6 April 2015.

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Our approach

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1) Confirm UK CGT exposure (yes, potentially)

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We confirmed that a non-UK resident can be within the UK CGT charge on disposal of UK residential property. For properties owned before 6 April 2015, the UK charge generally focuses on the post-5 April 2015 element of the gain, using HMRC-accepted methods.

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2) Check reliefs (PPR / lettings relief)

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Private Residence Relief (PPR):
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PPR is a relief for a property that has been the owner’s only or main residence. In this case the property has been let continuously since purchase and the client has never occupied it, so PPR is not available on these facts. (Non-resident “90-day” rules are relevant only where there is genuine residence occupation to support a PPR claim in a year—they do not create PPR where there has been no occupation.)

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Lettings relief:
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Lettings relief depends on there being a PPR-qualifying residence history and, under the current rules, it is generally restricted to shared-occupancy cases. A fully-let property with no owner occupation will not qualify.

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3) Calculate the taxable gain (key technical step)

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Because the property was acquired in July 2014, we explained the accepted approaches for measuring the UK-taxable element, which commonly include:

• Rebasing to the 5 April 2015 market value, then taxing the gain after that date; or
• Time apportionment of the whole gain to isolate the post-5 April 2015 portion (and in some cases, a whole-gain approach can be considered).

What we requested early: purchase completion statement, SDLT/legal costs, letting timeline, capital improvement records, and—if using rebasing—supporting evidence for the 5 April 2015 valuation.

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Reporting and payment (the compliance point that matters most)

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We advised that the disposal must be reported to HMRC using the UK property reporting process. For completion dates on or after 27 October 2021, the deadline is generally within 60 days of completion, and any CGT due is payable by the same deadline.

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Outcome (in plain English)

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• UK CGT: Yes, potentially payable (non-resident selling UK residential property; post-5 April 2015 gains are in scope).
• PPR: No (the client never lived in the property).
• Lettings relief: No (no PPR basis and rules are tightly restricted).
• Reporting/payment: Report within 60 days of completion and pay any CGT due within that timeframe.

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Key takeaways for non-resident property sellers

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• UK CGT can apply even if you have never been UK resident.
• Reliefs like PPR are driven by actual occupation—a fully-let investment property will not qualify.
• Plan early for the 60-day reporting window and gather records/valuations before completion.

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Disclaimer: This case study is for general information only and does not constitute advice. Tax outcomes depend on full facts and the law in force at the time of disposal.