Selling UK property from the Gulf: capital gains tax and the 60-day rule

Non-residents pay UK tax on UK property gains

Since April 2015, people who live outside the UK pay UK capital gains tax when they sell a UK home. The gain is worked out in pounds, so currency moves between your home currency and sterling do not change the UK tax, although they do change what you receive at home. Owners who bought before April 2015 can usually use the property’s value on 5 April 2015 as their starting point.

No tax is withheld from the sale price by the solicitor. Instead, you report the sale and pay the tax yourself, within a strict deadline.

How the gain is worked out

• Start with the sale price.
• Deduct the purchase price and the costs of buying: Stamp Duty, legal fees and survey.
• Deduct the costs of selling: estate agent and legal fees.
• Deduct improvements that added to the property, such as an extension or loft conversion — but not repairs, redecoration or like-for-like replacements, which are claimed against the rent instead.
• Deduct the annual tax-free allowance of £3,000, which non-residents receive too.

Tax rates

Individuals pay 18% on any part of the gain that falls within the basic-rate band and 24% on the rest. The band is shared with your other UK income, such as rent, so many investors pay mostly 24%. Couples who own jointly each pay on their own share and each use their own allowance.

Companies do not pay capital gains tax. A company pays corporation tax on the gain, at 19% to 25%, through its normal tax return.

A worked example

An investor living in Kuwait sells a Manchester apartment bought in 2021. We assume the whole gain is taxed at 24%:

• Sale price: £270,000
• Less purchase price: £210,000
• Less Stamp Duty and legal fees on purchase: about £14,500
• Less agent and legal fees on sale: about £5,500
• Gain: £40,000, less the £3,000 allowance, leaving £37,000 taxable
• Tax at 24%: £8,880, to report and pay within 60 days of completion
• If part of the gain fell within the basic-rate band, the bill would be lower.

The 60-day rule

Non-residents must report every sale of UK property to HMRC within 60 days of completion, through an online UK property account — even if no tax is due or the sale made a loss. Any tax due must be paid by the same deadline. Late reports bring penalties and interest.

The sale must also appear on your annual UK tax return, where any difference is settled. A loss can be carried forward against future UK gains. Setting up the online account involves identity checks, so start before completion or ask your accountant to file for you.

Main-home relief rarely applies

Private residence relief removes tax on the home you live in, but for non-residents it only applies in a tax year when they spend at least 90 nights in the property. For most GCC investors, it does not apply.

A home bought in a student child’s own name is different: if the child lived there as their main home, relief normally covers those years plus the final nine months of ownership.

Selling from the Gulf, step by step

• Get a valuation and decide how to sell: with the tenant in place to another investor, or empty. Since 1 May 2026, selling with vacant possession needs four months’ notice and is not possible in a tenancy’s first year — see our Renters’ Rights Act guide.
• Instruct an estate agent and a solicitor. Identity and anti-money-laundering checks can be done by video.
• Prepare the documents: the EPC, gas and electrical certificates and, for flats, the lease and service charge information.
• Exchange contracts, then complete. Sales often take three to four months from an accepted offer, and longer for flats.
• Sign electronically or before a notary, or give a power of attorney so someone in the UK can sign for you.
• Plan the transfer home: a currency specialist usually offers a better rate than a bank.
• File the 60-day report and pay the tax.

Legitimate ways to reduce the bill

• Keep every receipt for buying costs and improvements from day one.
• Owning jointly with your spouse gives two allowances and two basic-rate bands.
• Timing matters: selling in a tax year (6 April to 5 April) with little other UK income can keep more of the gain at 18%.
• Losses on earlier UK property sales can be set against the gain.

How BPG helps

We run UK sales for GCC owners from start to finish: valuation, choosing the agent, coordinating the solicitor and keeping you updated. Our UK accounting partners calculate the gain, file the 60-day report and pay the tax on time.

This article is general information, not tax advice. Tax rates and rules change, so confirm the figures for your sale with a qualified UK tax adviser before you accept an offer.