{"id":720,"date":"2022-08-25T08:12:33","date_gmt":"2022-08-25T08:12:33","guid":{"rendered":"https:\/\/springbokproperties.co.uk\/blog\/?p=720"},"modified":"2022-08-25T08:12:33","modified_gmt":"2022-08-25T08:12:33","slug":"pay-tax-sell-house-uk-guide","status":"publish","type":"post","link":"https:\/\/www.springbokproperties.co.uk\/blog\/pay-tax-sell-house-uk-guide","title":{"rendered":"Do You Pay Tax When You Sell Your House? UK Guide"},"content":{"rendered":"

There are a number of matters to take into consideration when planning to sell your home. Your budget is among the most important of these. It\u2019s vital to clearly determine the costs inherent in any property sale before going ahead.<\/span><\/p>\n

As tax is payable on a range of profits and income types in the UK, many people understandably assume that a property transaction will incur some kind of duty. As a result, we are often asked \u201cdo you pay tax when selling your house?\u201d.<\/span><\/p>\n

However, the fact of the matter is that there is usually no tax to pay when you sell a property that is your primary residence.<\/span><\/p>\n

In this guide, we explore the situations in which you may be required to pay tax when taking steps to sell property.\u00a0<\/span><\/p>\n

When Do You Pay Tax on a Property Sale?<\/span><\/h2>\n

Wondering what tax to pay when selling a house? The good news is that, in most cases, you won\u2019t have to pay any at all!<\/span><\/p>\n

However, there are particular instances where Capital Gains Tax and\/or Income Tax may apply. Below, we\u2019ll explain a little about the scenarios in which this may be the case.<\/span><\/p>\n

Capital Gains Tax<\/span><\/h3>\n

Capital Gains Tax<\/span><\/a> is a levy on the profits you make when selling or \u201cdisposing of\u201d an \u201casset\u201d. In this case, the asset in question would be your house.<\/span><\/p>\n

Capital Gains Tax (CGT) is paid <\/span>only<\/span><\/i> if the property you are selling is <\/span>not<\/span><\/i> your \u201cmain residence\u201d.\u00a0<\/span><\/p>\n

This is known as \u201cprivate residence relief\u201d, and it means that you will <\/span>not<\/span><\/i> need to pay Capital Gains Tax if you are selling the home in which you spend the majority of your time, and to which most of your correspondence and bills are directed.<\/span><\/p>\n

It is possible to declare a particular property as your main residence through <\/span>HMRC<\/span><\/a>, although you can only nominate one property in this way at any one time.<\/span><\/p>\n

If you plan to sell a property that is not your main residence, CGT will very likely apply if it has grown in value since you bought it.<\/span><\/p>\n

You will also have to pay CGT if you sell an inherited or gifted second-home (that wasn\u2019t given to you by a spouse or civil partner) as long as its value has grown since it came into your possession.<\/span><\/p>\n

The tax is also payable when you sell a buy-to-let property that has increased in value.<\/span><\/p>\n

Other Scenarios<\/strong><\/h4>\n

There are further conditions under which Capital Gains Tax may apply, but these are particularly specific. You may be charged CGT if the property you are selling:<\/span><\/p>\n