Selling Your UK Home as an Expat?

So you've built a life abroad, and now you're thinking about selling your UK property. Perhaps you've been renting it out, or maybe it's been sitting empty while you figure out your next move. Either way, there's one question that keeps nagging at you: Will I have to pay Capital Gains Tax on this?

‍The answer, as with most things in UK tax, is "it depends." But here's the good news: if you play your cards right, you might not owe HMRC a penny. The secret weapon? Something called Private Residence Relief (PRR).

Let's break down exactly how this works, what HMRC considers your "main residence," and the clever deemed occupation rules that could save you thousands.

What Is Private Residence Relief?

Private Residence Relief is essentially HMRC's way of saying: "We won't tax you on the profit from selling your home: as long as it was genuinely your home." If your property qualifies for full PRR, you pay zero Capital Gains Tax on the sale. No reporting headaches, no tax bill, no stress.

To qualify for private residence relief, the property must have been your main residence and physically occupied for period(s) of ownership. If you've moved abroad and the property has been empty or let out for a period, you'll likely only get partial relief. But partial relief is still better than no relief: and there are some generous rules that can stretch your coverage further than you might expect.
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What Counts as Your "Main Residence"?

This is where things get interesting. HMRC doesn't just take your word for it when you claim a property is your main residence. They'll look at the evidence: and they're surprisingly thorough.

Here's what HMRC typically considers when determining whether a property genuinely qualifies as your main home:

• Where is your family based? If your spouse and children live at the property, that's a strong indicator it's your main residence.
• Where are you registered to vote? Electoral roll registration carries weight with HMRC.
• Where do your utility bills and bank statements go? The address on your correspondence matters.
• Where is your GP registered? Medical records tied to an address support your claim.
• Where do you spend most of your time? Physical presence is important, though not the only factor.
• What address do you use for official documents? Think driving licence, passport applications, and council tax.

If you own more than one property, you can nominate which one is your main residence for CGT purposes. This nomination must be made within two years of acquiring the second property. Miss that window, and HMRC will decide for you based on the facts: which might not work in your favour.

Note that if you're married or in a civil partnership, you can only have one main residence between you. You can't each claim a different property to double up on the relief.

The Deemed Occupation Rules: Your Secret Weapon

Here's where expats can really benefit. Even if you've physically moved out of your UK property, certain periods of absence can still count as "deemed occupation": meaning HMRC treats you as if you were living there, and you still get the relief. These rules are generous, but they come with conditions. Here's how they work:

The Final Period Exemption
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The last nine months of ownership always qualify for PRR, regardless of where you're living or what you're doing with the property. This applies even if you've moved abroad and the house is rented out. This final period exemption is automatic: you don't need to do anything special to claim it.
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The "Any Reason" Allowance
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You can be absent for up to three years for any reason whatsoever and still have that time count as deemed occupation. Taking a gap year? Working remotely from Bali? Just fancied a change of scenery? It doesn't matter: those three years are covered. However, there's a catch. To use this allowance, you must have lived in the property as your main residence both before and after the period of absence (more on this shortly).
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Working Elsewhere in the UK
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If your employer requires you to work at a location that makes daily commuting impractical, you can claim up to four years of deemed occupation. Again, you need to have occupied the property before and after this period.
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Working Abroad: The Unlimited Rule
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Here's the big one for expats. If you're working abroad, whether employed or self-employed, providing that you satisfy criteria, the period of absence is unlimited for deemed occupation purposes. You could spend ten years working in Dubai, and as long as you meet the other conditions, that entire period could still be covered by PRR. This rule is incredibly valuable, but you need to understand the conditions that come with it.
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The Catch: You Need to Come Back
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Here's the part that trips people up. To use the "any reason," "UK work," or "overseas work" deemed occupation rules, you generally need to have re-occupied the property as your main residence after the period of absence.

Without re-occupation, you can only claim:

• The time you actually lived there before leaving
• The final nine months of ownership

That unlimited overseas work exemption? It disappears if you sell the property without moving back in first: even briefly.

There are limited exceptions to the re-occupation requirement. If your employer requires you to work elsewhere and it wasn't reasonably practicable to return, you may still qualify. But HMRC interprets this narrowly, and you'll need solid evidence to support your case.

If you're an expat planning to sell your UK home, this is critical. A short period of re-occupation before selling could be the difference between a minimal tax bill and a significant one.

The 60-Day Reporting Deadline

Whether you owe CGT or not, if you're a non-UK resident selling UK property, you must report the disposal to HMRC within 60 days of completion.

This applies even if:

• The property qualifies for full PRR
• You've made a loss on the sale
• No tax is actually due

Miss this deadline, and you'll face penalties and interest charges: even if you don't owe any tax. It's one of the strictest reporting requirements in the UK tax system, and HMRC takes it seriously.

For the 2025/26 tax year, the CGT annual exempt amount has dropped to just £3,000 (down from £12,300 a few years ago). If your gain exceeds this after any reliefs, you'll pay CGT at 18% (basic rate) or 24% (higher rate) on residential property.
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Getting Your CGT Calculation Right

Calculating your CGT liability as an expat isn't always straightforward. You'll need to consider:

• The original purchase price and any allowable costs (stamp duty, legal fees, improvements)
• The sale price minus selling costs
• How much of your ownership qualifies for PRR
• Whether lettings relief applies (if you rented out part of the property while also living there)
• Any foreign tax credits if you're also taxed abroad

Getting this wrong could mean overpaying: or underpaying and facing penalties later.

How We Can Help

Selling a UK property from overseas involves more moving parts than most people realise. Between PRR calculations, deemed occupation rules, the 60-day reporting deadline, and potential double taxation issues, it's easy to make costly mistakes.

At Global Tax Consulting, we specialise in UK expat tax advice and help clients navigate CGT on property sales every day. Whether you're trying to figure out if you need to move back briefly before selling, or you just want someone to handle the HMRC reporting for you, we're here to make the process painless.