UK Capital Gains Tax on Property Sale as an Argentine Resident

Since April 2015, UK non-residents have been liable for UK Capital Gains Tax on the sale of UK residential property. This caught many expats off guard — the old rule was that non-residents were broadly exempt from CGT on all UK assets. Now, selling a flat in London while living in Buenos Aires triggers a UK tax event that must be reported and potentially paid.

The basic rule for non-residents

For related context, see Escribano vs UK Solicitor: Why Argentine Property Law Needs a Different Lawyer.

If you are non-UK-resident (under the SRT) and sell UK residential property, you pay CGT on the gain arising since 5 April 2015 (or since purchase, if bought after that date). The rates:

• 18% on gains within the basic rate band (up to £37,700 of total taxable income)
• 24% on gains above the basic rate band (increased from 28% in 2024 Budget)

Non-residents also receive the Annual Exempt Amount (currently £3,000/year), which shelters small gains from tax.

Private residence relief (PRR)

If the property was your principal private residence (PPR) at any point, PRR eliminates or reduces the taxable gain proportionally. The relief is calculated based on the ratio of time the property was your PPR to total ownership period.

Key PRR rules:

• The final 9 months of ownership always qualify for PRR, even if you were not living there. This was 18 months until 2020.
• Periods of letting can be partly relieved through letting relief (up to £40,000 per owner, but only if you also lived there at some point).
• Periods of absence while working overseas can qualify for PRR if you lived there before and after the overseas period.

Example: you bought a flat in 2018 for £300,000, lived in it until 2024, then moved to Argentina and rented it out. You sell in 2027 for £450,000. Gain: £150,000. Time owned: 9 years. Time as PPR: 6 years + 9 months final period = 6.75 years. PRR fraction: 6.75/9 = 75%. Taxable gain: 25% × £150,000 = £37,500 minus £3,000 AEA = £34,500 × 24% = £8,280 CGT.

If you sold while still living there, PRR would have covered the entire gain and CGT would be zero.

The temporary non-residence rule

This is the trap that catches many expats who leave and sell quickly. If you become non-resident and dispose of UK assets, then return to UK residence within 5 tax years, the gain is recaptured and taxed as if you had been resident all along.

The rule is designed to prevent people from leaving the UK briefly, selling assets tax-free, and returning. If you genuinely plan to live in Argentina long-term (5+ years), the rule does not bite. If you plan a shorter stint, be very careful about selling UK assets.

The 60-day reporting deadline

Non-residents selling UK residential property must file a Capital Gains Tax on UK Property return within 60 days of completion (not exchange). This is done online at gov.uk/report-and-pay-your-capital-gains-tax.

You report:

• Sale price and costs
• Purchase price and costs (or 5 April 2015 market value)
• Any PRR claimed
• The tax due (if any)
• Payment of the tax

This is separate from Self Assessment. You file the 60-day return AND later include the disposal on your annual Self Assessment return. The tax paid in the 60-day return is credited against any liability on Self Assessment.

Missing the 60-day deadline triggers penalties: £100 initially, then daily penalties if more than 3 months late.

UK-Argentina Double Taxation Agreement

The DTA between the UK and Argentina prevents double taxation. Under most DTAs, property gains are taxable in the country where the property is located (UK in this case). Argentina may also tax the gain under its own worldwide income rules if you are an Argentine tax resident, but will give credit for UK tax paid.

In practice, this means:

• You pay UK CGT first
• You report the gain to Argentine AFIP
• Argentine tax credit equals the UK CGT paid
• Net Argentine tax: usually nil or very small

Practical scenarios for British expats

Selling your UK home after moving to Argentina (within 5 years):

Be careful. PRR covers periods you lived there, plus the final 9 months. If you sell within 9 months of leaving, full PRR applies and no CGT. Beyond that, the gain starts to become partially taxable.

Selling a UK buy-to-let from Argentina:

No PRR (it was never your home). Full gain since purchase or April 2015 is taxable at 18/24%. Report within 60 days.

Selling after 5+ years in Argentina:

The temporary non-residence rule does not apply. You pay UK CGT on the taxable portion, claim any available reliefs, and credit the UK tax against Argentine liability.

Keeping the property and renting it out:

No CGT event until sale. But rental income is taxable in the UK (Non-Resident Landlord scheme) and possibly in Argentina too under worldwide income rules.

Planning points

1. Sell within 9 months of leaving if you want full PRR. This is the cleanest way to avoid any CGT.

2. If renting out, track the PRR calculation. The longer you rent before selling, the smaller the PRR fraction becomes.

3. If selling after 5 years abroad, the temporary non-residence rule drops away. No recapture risk.

4. Always file the 60-day return. Even if no tax is due (because PRR covers the gain), the reporting obligation exists.

5. Get a UK tax advisor. CGT on property with mixed-use periods, lettings, and overseas residence is genuinely complex. This is not DIY territory.

Not tax advice. Every property situation is different. Consult a UK chartered accountant with international CGT experience before selling.

Worth reading next

• Escribano vs UK Solicitor: Why Argentine Property Law Needs a Different Lawyer
• Getting a CUIT as a UK Buyer: Tax ID for Argentine Property Purchases
• Buying Property in Argentina as a British Citizen