UK Property CGT for Aus Expats

An exhaustive legal and statutory guide for British expats in Australia selling UK residential property—navigating HMRC 60-day Non-Resident CGT reporting and claiming ATO Foreign Tax Credit offsets.

Statutory Provisions (Finance Act 2019 Schedule 2)

Non-Resident CGT (NRCGT) Regime

Since April 2015 (and expanded under Finance Act 2019 Schedule 2), non-UK residents disposing of UK land or residential property are subject to UK Capital Gains Tax under **TCGA 1992 Section 1B**.

Sellers must file an online **HMRC NRCGT return within 60 days of completion** and pay any CGT due (18% for basic rate / 24% for higher rate), utilizing April 2015 rebasing valuation or straight-line apportionment.

Statutory Key Parameters:

HMRC Filing Window	Strict 60 Days Post-Completion
Rebasing Date	5 April 2015 Market Value
UK CGT Rates	18% / 24% Residential
ATO Credit Relief	Foreign Income Tax Offset (FITO)
Penalty Code	FA 2009 Sch 55 Late Penalty

Mandatory 60-Day HMRC Return: You must submit an online NRCGT return to HMRC within 60 days of completion even if no UK tax is payable due to rebasing or Private Residence Relief!

HMRC Rebasing & PRR Rules

April 2015 Rebasing: Only gains accrued from 6 April 2015 to completion are taxable. Pre-2015 gain is excluded by rebasing.
Private Residence Relief (PRR): If the property was your main home prior to moving to Australia, PRR covers the occupation period plus the final 9 months of ownership.

ATO Tax Treatment & FITO Offset

ATO Worldwide CGT: As an Australian tax resident, the sale of foreign real estate is taxable under ATO capital gains tax rules.
50% CGT Discount: Australian residents holding the asset for 12+ months receive a 50% discount on the net gain under ATO rules.
Foreign Income Tax Offset (FITO): Claim dollar-for-dollar tax offset for HMRC UK CGT paid against ATO tax due under DTAA Article 22.

Frequently Asked Questions (FAQ)

Under Finance Act 2019 Schedule 2 rules, non-UK residents must report the sale or disposal of UK residential property to HMRC and pay any Capital Gains Tax due within 60 days of completion using the HMRC Non-Resident CGT service.

Under NRCGT rules introduced in April 2015, non-UK residents are only taxed on capital gains accrued from 5 April 2015 onwards. Property owners can rebase the property's value to its market value on 5 April 2015 to deduct pre-2015 gains.

As Australian tax residents, worldwide capital gains are taxable by the ATO. However, under Article 22 of the UK-Australia DTAA, Australian residents receive a Foreign Income Tax Offset (FITO) on their ATO tax return for HMRC UK CGT paid.