Do you pay tax when you sell a house?
Do you pay tax when you sell a house? You will not pay Capital Gains Tax when you sell, if you meet all of the following:
- You have one home and you have lived in it as your main home the whole time
- You have not let parts of it (it doesn’t include having a single lodger)
- You have not used it parts of it for business only
- The grounds are less than 5000 square metres (a bit over an acre)
- You did not buy it to make a gain
You will get a tax relief called Private Residence Relief.
You may have to pay some Capital Gains Tax if you do not meet all the requirements.
What if I am selling a property that is not my home?
You may have to pay Capital Gains Tax if you make a profit when you sell a property for example:
- Buy-to-let properties
- Business premises
- Inherited property
You will first have to work out your gain to find out whether you need to pay tax.
You will not usually have to pay tax if:
- they are gifts to your husband, wife, civil partner or a charity
- it is a business asset
- it was occupied by a dependent relative
If you want to find out more information click here.
We hope this answers your question ‘Do you pay tax when you sell a house?’.
Greater London Properties are Central London’s largest independent estate agent focusing on Residential Sales, Lettings, Property Management and Commercial properties across London’s West End. If you are looking to buy or rent a property in Central London, please visit our website at Greater London Properties, Central London’s largest independent estate agent or call us on 0207 113 1066.