Step-by-Step Buying Guide

6. Tax

You may need to pay:

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.

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.