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 8 July 2020 and 31 March 2021

You pay SDLT if you paid more than £500,000 for the property.

If you bought before 8 July 2020 or after 31 March 2021

You pay SDLT if you paid more than £125,000 for the property. If it’s your first home you do not have to pay tax if the property is £300,000 or less.

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