Do you pay tax when you sell your home?

Usually not. If the house has been your only or main home for the whole time you've owned it, you won't pay Capital Gains Tax when you sell it, because of a tax relief called Private Residence Relief. You don't need to claim it: it applies automatically. Tax can come into it if you've let the home out, lived somewhere else for a while, used part of it only for business, have very large grounds, own more than one home, or bought it to make a profit.

This guide explains the rules in England and Wales (Capital Gains Tax works the same way across the UK). It's general information, not tax advice, so speak to an accountant if your situation isn't straightforward.

When is selling your home tax-free?

GOV.UK says you won't pay Capital Gains Tax when you sell your home if all of these apply:

• you have one home and 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 (having a lodger doesn't count)
• you haven't used part of it only for business (a room used as an occasional or temporary office doesn't count)
• the grounds, including all buildings, are under 5,000 square metres (just over an acre) in total
• you didn't buy it just to make a gain

If one of these doesn't fit, it doesn't mean the whole gain is taxed. Usually only part of it is, as the sections below explain. Married couples and civil partners can only have one main home between them at any one time.

Are there any other taxes for the seller?

Not usually. Stamp Duty Land Tax in England, and Land Transaction Tax in Wales, are paid by the buyer, not the seller. Your main selling costs are fees rather than taxes: see the cost of selling a house.

The final 9 months are always covered

The last 9 months you own a home always qualify for relief, as long as it was your only or main home at some point. That's true whatever you use the house for in those months, even if you've already moved into a new home. So if it was your main home for the rest of the time, you move out and the sale completes within 9 months, there's usually nothing to pay.

If you're disabled, or living in a care home, the final 36 months can qualify instead, as long as you have no other home that could get relief.

This rule has changed over the years. For sales before 6 April 2020, the final period was 18 months, so older articles may show the wrong figure.

Time away from home

You can still get relief for some periods when you didn't live in your home, as long as it's your only home (or the one you've nominated), and you lived there both before and after the time away. The rule about moving back doesn't apply if your work prevented you from returning.

Reason for being away	How long can count
Any reason	Up to 3 years in total
You had to live away for work elsewhere in the UK	Up to 4 years
You were working outside the UK	Any length

Moving in late. If you couldn't move into a home straight away because you were refurbishing it or couldn't sell your old home, HMRC's helpsheet HS283 says up to the first 24 months can be treated as if you lived there.

Letting out your home

If you move out and let the whole house, the time it's let usually isn't covered by Private Residence Relief, apart from the final 9 months. Some periods away can still count if you move back in afterwards, as explained above.

Lodgers don't count. You're not treated as letting out your home if you have a lodger who shares your living space with you. The same applies if your children or parents live with you and pay rent or housekeeping.

Letting Relief. For sales since 6 April 2020, Letting Relief only applies if you lived in your home at the same time as your tenants, for example letting out part of the house as separate accommodation while you live in the rest. It doesn't cover any time the whole home was let. It's the lowest of:

• the Private Residence Relief you get
• £40,000
• the gain you made on the let part

Working out partial relief: an example

When only part of your time counts, the gain is split in proportion. HMRC's helpsheet works it out in months: the months that qualify (the time you lived there, plus allowed absences and the final 9 months) divided by the months you owned the home.

Say you owned a flat for 10 years (120 months). You lived there for the first 6 years (72 months), then moved in with a partner and let the whole flat for 4 years before selling it. Your gain after buying and selling costs is £100,000.

Months that qualify	72 lived there + final 9 months = 81
Share of the gain that's tax-free	81 ÷ 120 = 67.5%
Private Residence Relief	£67,500
Gain left	£32,500
Annual exempt amount (2026 to 2027)	−£3,000
Taxable gain	£29,500
Tax if it all falls in your basic rate band (18%)	£5,310
Tax if you're a higher rate taxpayer (24%)	£7,080

The 3-year absence rule doesn't help here, because you never moved back in. Letting Relief doesn't apply either, because the whole flat was let. Any tax would need to be reported and paid within 60 days of completion.

Gardens and grounds over half a hectare

Relief covers your garden and grounds, including any outbuildings, up to half a hectare (5,000 square metres, a little over an acre). If your land is bigger, relief only covers the area needed for the "reasonable enjoyment" of the house, judged by its size and character. A gain on the rest may be taxable.

Selling land separately matters too. HMRC's helpsheet says there's no relief if you sell all or part of your garden after you've sold the house, for example keeping a plot back and selling it later.

Using part of your home for business

If part of your home is used only for business, that part doesn't qualify for relief, and a share of the gain can be taxable. Using a room as a temporary or occasional office doesn't count as exclusive business use.

If you own more than one home

You can only get Private Residence Relief on one home at a time. If you live in two homes, for example a house and a flat near work, you can choose (nominate) which one counts as your main home by writing to HMRC. All the owners must sign the letter, and it must be sent within 2 years of the date your combination of homes changes. If you don't nominate, HMRC decides which was your main home from the facts.

Married couples and civil partners who aren't separated can only have one main home between them. If you each owned a home when you married and kept using both, you can jointly nominate one, within 2 years of the wedding or civil partnership.

If you're selling during a separation, the rules on timing and transfers between you are different. See selling a house during divorce.

If you bought the home to make a profit

Relief isn't available if you bought a property just to make a gain when you sell it, and it may not cover the part of a gain that comes from money you spent on the home in order to make a profit. HMRC's helpsheet gives the example of buying a house to sell it quickly at a profit.

When tax is due on your home

If part of the gain is taxable, it's charged like any other property gain. For the 2026 to 2027 tax year, the first £3,000 of your total gains is tax-free, then the rate is 18% on the part that fits in your unused basic rate band and 24% above it. You must report the sale and pay within 60 days of completion. Capital Gains Tax on property explains the sums, the costs you can deduct and how to report.

Does how you sell make a difference?

If your sale is fully covered by Private Residence Relief, the price and the route make no difference to the tax. What does matter is timing if you've already moved out: a sale that completes within 9 months of moving out is usually fully covered, while a sale that drags on can leave part of the gain taxable.

An estate agent usually gets the highest price for a home in good condition, but it can take months. Cash house buyers, including us, can complete much faster, but pay below market value. Any extra tax is only on the share of the gain for the extra months, so compare it with how much less a quicker sale would get you before deciding.