Tax when you sell your home

Private Residence Relief

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

  • you have one home and 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 - this does not include having a lodger
  • you have not used part of it for business only
  • the grounds, including all buildings, are less than 5,000 square metres (just over an acre) in total
  • you did not buy it just to make a gain

You do not need to do anything. You’ll automatically get a tax relief called Private Residence Relief.

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

Married couples and civil partners can only count one property as their main home at any one time.

The rules are different if you sell property that’s not your home or if you live abroad.