Capital gains tax on UK company shares: what non-resident directors need to know
By Ibrahem Almahawe
Key takeaways for Arab directors
- 1Non-UK residents are generally not subject to UK CGT on gains from ordinary UK company shares
- 2Exception: companies where more than 75% of gross assets is UK land or property, selling these shares triggers non-resident CGT
- 3Most Gulf states have double tax treaties with the UK that further protect against UK CGT on share gains
- 4Non-resident CGT disposals must be reported to HMRC within 60 days, the clock starts at completion
- 5If your company holds UK property or you are planning an exit, take advice before transacting
Frequently asked questions
- Do non-residents pay UK Capital Gains Tax when selling shares in a UK company?
- In general, no. Under UK domestic tax law, non-UK residents are exempt from UK Capital Gains Tax on disposals of shares in standard UK trading or holding companies, provided the company is not UK property-rich and the seller is not temporarily non-resident.
- What makes a UK company 'property-rich' for Capital Gains Tax purposes?
- A company is classed as UK property-rich if at least 75% of its gross asset value derives directly or indirectly from UK land or real estate. Disposals of shares in property-rich companies by non-residents fall within the scope of Non-Resident Capital Gains Tax (NRCGT).
- What is the reporting deadline for non-residents selling UK property-rich shares?
- Disposals of interests in UK property or property-rich companies must be reported to HMRC and any tax paid within 60 days of the completion date, even if no tax is due.
- Does the temporary non-residence rule affect UK share sales?
- Yes. If you were a UK tax resident for at least four of the seven tax years prior to departure and return to the UK within five years, gains realized during your non-residence period on assets acquired before leaving can be taxed upon your return to the UK.
Fileminder’s take, written for Arab UK company directors
One of the most common questions we receive from Arab directors thinking about the future of their UK company is: if I sell my shares, does the UK take capital gains tax? The answer under UK domestic law for most non-residents selling shares in a non-property UK trading or holding company is: no, UK CGT does not apply.
The key rule: under UK domestic law, non-UK residents are generally not subject to UK capital gains tax on gains from UK company shares unless the company is UK property-rich. A company is considered UK property-rich if more than 75% of its gross asset value derives from UK land or property. For most Arab directors running a UK trading company, a holding company, or a services business, the company will not be UK property-rich.
However, since April 2019, HMRC extended UK CGT to non-residents for disposals of UK land and interests in UK property-rich companies. If your UK company primarily holds UK real estate, commercial property, residential investment, or development land, selling your shares could trigger a UK CGT liability even if you live in the UAE or Saudi Arabia. The rate can reach 20% on the gain for non-residential property businesses.
What about double tax treaties? Most Gulf states (UAE, Saudi Arabia, Kuwait, Qatar, Bahrain, Oman) have double taxation agreements with the UK. Many of these treaties allocate taxing rights on gains from company shares to the country of residence of the seller, not the UK, meaning a UAE or Saudi resident selling shares in a non-property UK company would owe no UK tax even if domestic rules were to apply. But treaty eligibility requires the seller to be genuinely treaty resident, and treaty claims must be filed correctly.
The practical takeaway: if your UK company does not hold UK property, selling your shares as a Gulf resident almost certainly carries no UK CGT exposure. If it does hold UK property, or if you are planning a restructure, buyout, or exit, take professional advice before transacting, not after. The reporting obligation for non-resident CGT disposals is on a short timeline: within 60 days of completion.
Fileminder can provide initial guidance on whether your company structure is likely to be within scope, and refer you to specialist UK tax counsel for formal advice on exits or restructures.
Written by
Founder of Fileminder, an AAT Licensed Accountant, and author of the eight-book International Taxation Series. Browse the books →
Related reading
Related resources
Disclaimer
General educational guidance only, not legal, tax, accounting, immigration, investment or financial advice. We don't guarantee the information is complete, current or suitable for your situation. Always check official sources (GOV.UK, Companies House, HMRC, the relevant professional body) and speak to a qualified professional before acting. Last reviewed: July 2026.
Have a question about your company?
Message us on WhatsApp, Sun–Thu, 9am–6pm GST.
Message us on WhatsApp