UK Property & India

    Selling UK Property When You Live in India

    You have 60 days from completion to report the sale to HMRC and pay any tax due — even if the calculation shows nothing to pay.

    Living in India does not remove your UK tax obligation, and the annual tax return is no longer where a non-resident disposal gets dealt with.

    This page sets out the deadline, how the gain is rebased, and how the same sale is treated on the Indian side of your position.

    The short answer

    As a non-UK resident selling UK land or property, you must file a UK property return and pay any capital gains tax within 60 days of completion. The filing requirement applies even where no tax is payable.

    You may also be taxable in India on the same gain, depending on your residential status there — with relief available under the UK-India Double Taxation Agreement.

    The Trap

    Why This Catches People Out

    Most people selling a UK property assume the tax gets dealt with in the annual tax return, the way it used to. For a non-resident that is wrong, and the error is discovered months later when penalties have already accrued.

    Two separate obligations run in parallel. The 60-day UK property return is due regardless of whether you are in Self Assessment, and regardless of whether the disposal produces a gain, a loss or exactly nothing. Conveyancers acting on the sale frequently do not flag it, because the tax position of an overseas seller is outside the scope of the conveyancing itself.

    The Deadline

    The 60-Day Deadline: What Has to Happen

    • The clock starts at completion, not exchange, and not when the funds reach you.
    • A UK property return must be filed with HMRC within 60 days.
    • Any tax due must be paid in the same 60 days — the payment deadline is not separate from the filing one.
    • The return is required even on a nil or loss position if you are non-resident.
    • You may still need to report the disposal again in a Self Assessment return for the year.
    • Late filing carries penalties, with interest on late-paid tax, escalating the longer it runs.

    Practical point: you will need a Government Gateway account and, if you have never filed in the UK from abroad, that setup can itself absorb part of your 60 days. Start it before completion, not after.

    Rebasing

    How the Gain Is Worked Out

    If you have held the property for a long time, the gain is usually not measured from what you originally paid. Non-residents can generally use a rebased value:

    • Residential property — the market value at April 2015 is normally the starting point.
    • Non-residential property and indirect disposals — the market value at April 2019.
    • Alternative bases can be elected in some cases, including time-apportionment or the full gain over ownership, where those produce a better result.

    The choice of basis is made when you report, and it can change the liability substantially — which is why the calculation belongs before completion, while you still have options, rather than in week eight of a 60-day window.

    Other factors that commonly apply to NRIs and British expats: private residence relief for periods the property was genuinely your home, restrictions where you have been non-resident, deductible costs of improvement and sale, jointly held property splitting the gain between owners, and the temporary non-residence rules if you return to the UK within a short period.

    Indian Tax

    The Indian Side of the Same Sale

    A UK property sale does not stop at HMRC. Whether India taxes the same gain depends on your residential status in India for that financial year:

    • Resident and ordinarily resident — taxable in India on worldwide income, so the UK gain is reportable in India, with credit for UK tax under the UK-India Double Taxation Agreement.
    • RNOR — foreign income is generally outside the Indian charge, which can make the timing of a sale extremely valuable for a recently returned NRI.
    • Non-resident in India — the UK gain is generally not taxable in India.

    There are also disclosure obligations in India for foreign assets held by residents, which are separate from the tax charge and carry their own consequences if missed. If you are returning to India, the interaction between the sale date and your residency date is usually the biggest lever available — see how RNOR status works and how long the window lasts.

    Process

    A Sensible Sequence

    1. 1Establish your residency position in both countries for the tax year of sale.
    2. 2Obtain the rebasing valuation and calculate the gain on each available basis.
    3. 3Decide whether the completion date should move relative to your residency position.
    4. 4Set up UK filing access before completion.
    5. 5File and pay within 60 days of completion.
    6. 6Report in UK Self Assessment and, where required, in your Indian return.
    7. 7Plan the repatriation and where the proceeds should sit.

    Official sources

    Related Reading

    Where to Go Next

    This page is general information about how UK and Indian rules operate. It is not a personal recommendation or a substitute for tax advice on your own circumstances.

    FAQs

    Frequently Asked Questions

    Do I pay UK capital gains tax if I live in India and sell a UK property?

    Yes. Since April 2015 non-UK residents have been within the scope of UK capital gains tax on disposals of UK residential property, and the rules were extended to all UK land and property from April 2019. Being resident in India does not remove the UK liability.

    What is the 60-day rule?

    A non-resident must submit a UK property return to HMRC and pay any capital gains tax due within 60 days of the date of completion. The obligation to file applies even when the calculation produces no tax at all, and even when you already file a Self Assessment return. Missing it triggers penalties.

    Do I have to report even if I made a loss or owe nothing?

    If you are non-resident, yes — the return is required for the disposal itself, not only where tax is payable. This is the single most common and most expensive mistake NRIs and British expats make.

    How is the gain calculated if I have owned the property for years?

    Non-residents can generally use a rebased value rather than the original purchase price: April 2015 for residential property and April 2019 for non-residential and indirect disposals. Alternative bases can be elected in some cases. Choosing the right basis can change the tax materially, so it should be calculated before completion rather than after.

    Do I also pay tax in India on the sale?

    It depends on your residential status in India in the year of sale. A resident and ordinarily resident individual is taxable in India on worldwide income, including a UK property gain, with relief for UK tax available under the UK-India Double Taxation Agreement. A person who is non-resident or RNOR in India for that year is generally not taxed there on the UK gain. Timing the sale relative to your residency position is often the largest single planning decision.

    What about bringing the sale proceeds to India?

    Remitting the proceeds is a separate question from the tax. It involves banking documentation, exchange control and currency timing, and where the money should sit depends on your plans for it. We help clients coordinate the tax position and the repatriation together.

    Selling a UK Property From India?

    Speak to us before you complete. The planning options are widest before the sale, and the deadline starts the day it finishes.