If you are not UK resident in 2026/27 and have sold a UK property, the broad position is: settle the UK capital gains tax first, then decide how much to keep as cash and when you will need the rest. Only after that does choosing investments make sense, and the right mix depends on your timescale, currency needs and where you expect to live next.

Step one: clear the UK tax on the sale

If you are not UK resident and sell UK property or land, GOV.UK says you must report the sale to HMRC within 60 days of completion, even if there is no tax to pay. Where tax is due, it is normally payable within the same window.

For 2026/27, capital gains are taxed at 18% or 24% depending on how they sit against your UK income, and the annual exempt amount is GBP 3,000. HMRC's guidance sets out three statutory ways for non-residents to calculate the gain on UK residential property: rebasing to the market value at 5 April 2015, straight-line time apportionment of the whole gain, or the whole period of ownership. Rebasing is not automatically the best method. Which options are available, and which gives the better result, depends on the property's history and your circumstances. Working this out before investing means you do not tie up money you will later need for HMRC.

Your country of residence may also tax the gain. The UAE does not currently tax individuals on personal real estate investment income, but if you live in Spain, Portugal or Australia, local rules and any treaty relief need checking.

Step two: decide what the money is for

Before choosing investments, split the proceeds into purposes:

  • Near term, under three years: a home purchase, school fees, a move. This often belongs in cash or very low risk holdings.
  • Medium term, three to ten years: a balance of growth and stability may suit.
  • Long term, over ten years: retirement or legacy money may be able to take more investment risk, depending on your attitude to risk and capacity for loss.

Keep an emergency reserve separate. Bank deposits with UK authorised institutions are protected by the FSCS up to GBP 120,000 per person per institution, so large cash sums may need spreading. Protection elsewhere depends on the local scheme.

Step three: think about currency and location

Proceeds arrive in sterling. If you live and spend in dirhams, which are pegged to the US dollar, or in euros, consider which currency your future spending will be in. Converting everything at once fixes the rate on one day; converting in stages spreads the timing risk.

Then consider where to hold the money. Many UK-situated assets remain within UK inheritance tax, and the position for other assets depends on your long-term UK residence status. Holdings offshore may suit a mobile life but need to work with the tax rules of wherever you settle. If you might return to the UK within five years, the temporary non-residence rules can bring some gains made while abroad back into UK tax.

Step four: lump sum or phased investing

Investing everything at once means the money is working sooner; phasing it in over several months reduces the risk of investing just before a fall. Neither approach is right for everyone. Some people use a mix, investing part immediately and drip feeding the rest.

Illustrative example only, not a real client. Priya, 52, lives in Dubai and sells a London flat for GBP 500,000. Using the rebasing method, her gain is GBP 60,000. Assuming she has no other UK income or gains in 2026/27 and full use of the basic rate band, the taxable gain after the GBP 3,000 exempt amount is GBP 57,000. Of that, GBP 37,700 is taxed at 18% (GBP 6,786) and GBP 19,300 at 24% (GBP 4,632), so GBP 11,418 in total, ignoring selling costs and any other relief. She reports within 60 days and sets the tax aside. She keeps GBP 50,000 as an emergency and school fees reserve, earmarks GBP 100,000 for a home purchase in two years, and considers investing the remaining GBP 338,582 for retirement, partly converted to dollars to match her spending.

Our guide to investing a lump sum as a British expat covers the choices in more depth, and our guide to selling UK property as a non-resident explains the CGT steps.

Common mistakes

  • Missing the 60-day reporting deadline because no tax was due.
  • Assuming rebasing always gives the lowest gain.
  • Investing money that will be needed for tax or a near-term purchase.
  • Ignoring how your next country of residence will tax the investments.

A regulated financial adviser can help. Get in touch for a free introduction.

Sources and further reading

Last reviewed: October 2026. Tax year: 2026/27. Jurisdictions covered: UK, UAE. Rates, legislation and guidance change, so recheck before relying on this. Rules can differ between England and Wales, Scotland and Northern Ireland; tax residence is fact-specific; treaty outcomes depend on residence, domicile or nationality provisions; examples are simplified and omit reliefs, costs, exchange rates and anti-avoidance rules. This is general information, not financial, tax or legal advice. Take advice in the relevant country before acting.