Buying or selling your home

6. Tax

You may need to pay:

  • Stamp Duty Land Tax when you buy a home
  • Capital Gains Tax when you sell a home

Stamp Duty Land Tax

If you buy property for more than £125,000, you pay Stamp Duty Land Tax.

The rate you pay depends on the purchase price of the property.

You still have to pay if you swap something of economic value for a property, eg shares or another property.

Capital Gains Tax

You don’t pay Capital Gains Tax when you sell (or ‘dispose of’) your home if all of the following apply:

  • you’ve lived in it as your main home for all the time you’ve owned it
  • you haven’t let part of it out or used part of it for business only
  • the grounds, including the buildings, are smaller than 5,000 square metres (just over an acre)

This is because you automatically get a tax relief called Private Residence Relief. You don’t need to do anything.

If you don’t meet all these criteria you may have to pay some Capital Gains Tax.