United Kingdom: What a non-resident pays, income and capital gains

A non-UK resident pays UK tax on their UK income, not on their foreign income. Regarding capital gains, GOV.UK states that they normally pay nothing on the sale of an asset, except for UK real estate or land (another page adds: or upon returning to the UK). The sale of a UK residential property must be declared within 60 days. In several situations, a Self Assessment declaration using form SA109 is mandatory.

This page follows the guidelines of GOV.UK. It does not provide information on income tax brackets and rates, details of the Non-Resident Landlord Scheme, the Franco-British tax treaty, or the taxation of British income in France. For information on residency itself, please see our page on the Statutory Residence Test.

What is imposed, what is not

A resident normally pays British tax on all their income. Therefore, everything depends on your status, tax year by tax year.

Personal dejection

A non-resident eligible for the Personal Allowance only pays tax on income exceeding this amount. Otherwise, all their UK income is taxed.

GOV.UK states that you are eligible if you are a British citizen, a citizen of a country in the European Economic Area, or if you worked for the British government during the tax year. A double taxation agreement may also make you eligible. The page does not specify the amount.

A non-resident must claim the tax relief at the end of each tax year in which they have UK income, using form R43 sent to HM Revenue and Customs (HMRC). The same form is used to claim back any overpaid tax, or the claim can be made in a Self-Assessment declaration.

When to declare: Self Assessment and SA109

According to GOV.UK, a non-resident must generally submit a Self Assessment declaration if, in particular:

• he rents a property in the United Kingdom; ;
• He works for himself in the United Kingdom; ;
• he has taxable savings interest from British banks or building societies; ;
• He has a pension outside the UK and has been a UK resident for one of the previous 5 years; ;
• He has other British income that is not taxed at source.

The declaration must be accompanied by form SA109. It can be sent by post or using SA109-compatible commercial software. Non-residents cannot file their declarations via HMRC's online services.

Late filing is penalized by a fine. The deadline is earlier for postal filings: October 31st. GOV.UK links to a separate page for the online deadline, which is not included here.

Capital gains on British real estate

A non-resident must declare any sale of UK property or land, even if they do not owe any tax. For residential property, the deadline is 60 days after the sale for transactions completed on or after October 27, 2021 (30 days between April 6, 2020 and October 26, 2021).

Non-resident companies pay corporation tax on these capital gains. Indirect disposals are also covered: those of an asset that derives 75 % or more of its value from UK real estate, if you own at least 25 % of it.

For capital gains tax rates and the annual allowance, see our page on UK Capital Gains Tax. A non-resident does not have to declare or pay tax on other assets that have increased in value, according to GOV.UK.

Double taxation

If your country of residence also taxes your UK income and has a double taxation agreement with the UK, you can claim relief from the UK to avoid being taxed twice. The rules of the agreement between France and the UK can be found on our dedicated page.

Taxation of a non-resident in the United Kingdom: numerical example (fictitious profile)

Situation. Claire, a fictional character, is not a British tax resident. She owns an apartment in London. The sale takes place on December 15, 2026. She believes she will owe no tax.

Issue. She believes that in the absence of tax, no declaration is necessary.

Strategy. Apply the GOV.UK deadline for a residential property: 60 days after the sale for a completion from 27 October 2021, declaration due even without tax.

Result. Adding 60 calendar days to the completion date results in a deadline of February 13, 2027, a Saturday. Our research does not support the possibility of postponing a deadline that falls on a Saturday; therefore, it is advisable to declare the project beforehand. For a completion date of March 2, 2027, the calculation yields a deadline of May 1, 2027, also a Saturday.

This profile is fictitious. The calculation method (whether or not the sale date is included) is not established based on our research: the calculation is an estimate, to be confirmed with HMRC. Assumptions: residential property, completion date of December 15, 2026 or March 2, 2027, calculation in calendar days from that date.

Taxation of a non-resident in the United Kingdom: what changes depending on your situation

• Your resident or non-resident status, which is decided annually (see our page on the Statutory Residence Test).
• Your nationality, for personal allowance purposes.
• The nature of your income: rent, pension, self-employment, savings.
• The convention between France and the United Kingdom and your taxation in France, which are not dealt with here.

No results are guaranteed. The rule depends on your situation; check before deciding.