Tax

You may need to pay:

  • Stamp Duty Land Tax when you buy a home in England
  • Land Transaction Tax when you buy a home in Wales
  • Capital Gains Tax when you sell a home

Stamp Duty Land Tax

If you buy between 1 July 2021 and 30 September 2021

You pay SDLT if you paid more than £250,000 for the property.

If you buy from 1 October 2021

You pay SDLT if you paid more than £125,000 for the property. This threshold also applies to any property bought before 8 July 2020.

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

If you’re buying your first home

From 1 July 2021 you do not have to pay SDLT if the property is £300,000 or less.

Capital Gains Tax

You do not 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 have not 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 do not need to do anything.

If you do not meet all these criteria you may have to pay some Capital Gains Tax.