Last updated: 14 October 2026
Can a US resident claim UK private residence relief when selling a UK home?
Yes, but only for qualifying periods. A non-resident selling UK residential property can claim private residence relief (PRR) for periods when the property was their only or main residence. For any tax year in which you were non-resident, the property only counts as your residence if you, or your spouse, spent at least 90 days in it (or in other UK homes) during that year. You must report the sale to HMRC within 60 days, even if no tax is due. The US will usually tax the gain as well, with credit for UK tax.
How the gain is worked out
Non-residents have been within UK CGT on residential property since 6 April 2015. You can choose how to calculate the gain:
| Method | Gain covered |
| Rebasing (default) | Growth in value since 5 April 2015 |
| Time apportionment | The whole gain, apportioned to the period after 5 April 2015 |
| Full gain | The whole gain since purchase (useful if there is a loss) |
The 90-day rule
For each tax year you are non-resident, PRR is only available if you or your spouse spent at least 90 midnights in the property, or in UK properties combined, during that year. Without it, the period doesn’t qualify, except for the final 9 months of ownership, which always qualify if the property was your main residence at some point.
Example
Michael bought a London flat in 2010 and lived there until he moved to New York in April 2018. He sells it in 2026 for £800,000. Its value on 5 April 2015 was £600,000. Using rebasing, the gain is £200,000 over 11 years (2015 to 2026). He lived there for 3 of those years and gets the last 9 months, so about 3.75 years qualify. The rest, about 66%, is taxable: roughly £132,000, less the £3,000 annual exemption, taxed at 18% or 24%.
US tax
US citizens and residents are taxed on worldwide gains. The US has its own exclusion of up to $250,000 ($500,000 for married couples filing jointly) on the sale of a main home owned and used for 2 of the last 5 years. The UK–US double tax treaty and US foreign tax credits help prevent double taxation, but timing and currency differences can create mismatches. Gains are calculated in dollars for US tax, so exchange-rate movements matter.
Reporting in the UK
- File a non-resident CGT return through HMRC’s online UK property service within 60 days of completion
2. Pay any tax due by the same deadline
3. Include the gain on a Self Assessment return if you already file one
Late filing penalties apply even when no tax is due.
Practical tips
- Get a valuation of the property at 5 April 2015
- Keep records of your days in the UK each year
- Coordinate with your US tax preparer before completion
Frequently asked questions
Do I need to report if PRR covers the whole gain?
Yes, non-residents must still report within 60 days.
Can I use the annual exemption?
Yes, £3,000 for 2026/27.
Is the 24% rate the same for non-residents?
Yes, residential property rates are the same.
Will the US give credit for UK tax?
Usually, through the foreign tax credit.
Related: CGT when selling your home and buy-to-let CGT.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with UK property sales by non-residents. See our property tax accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
