selling

Tax when selling a house: what you pay and what you don't

Tax when selling a house in England: sellers do not pay stamp duty, Capital Gains Tax may apply to a second home, and the 60 day rule. Worked examples included.

4 min read
Last reviewed 5 November 2026
By Your Property Check team

Part 1 of 9

The short version

General information, not advice. Selling is taxed very differently depending on what you are selling. This table shows the usual position, with the rule behind each line from GOV.UK pages we read on 5 November 2026.

Tax	Does the seller pay?	When it applies
Stamp Duty Land Tax	No	GOV.UK describes it as paid by the person buying or being transferred the property
Capital Gains Tax on your main home	Usually not	Private Residence Relief applies automatically if its conditions are met
Capital Gains Tax on other property	Possibly	Buy-to-let, second homes, land and inherited property, on the gain only
Income Tax on rent	Separate	Tax on rent received while the property was let, reported on Self Assessment
Inheritance Tax	Not triggered by sale	Depends on the estate, see our guide on thresholds

Part 2 of 9

Do sellers pay stamp duty?

No. GOV.UK says you pay Stamp Duty Land Tax when you buy a freehold or leasehold property or are transferred land or property in exchange for payment. It is the buyer's bill. If you are also buying your next home, you pay stamp duty as a buyer on that purchase, not on the sale. Our stamp duty calculator shows the bill on the home you are buying, and the article on stamp duty on a second home covers the higher rates.

Part 3 of 9

Capital Gains Tax on your main home

Capital Gains Tax is a tax on the gain, not on the sale price. GOV.UK says you pay no Capital Gains Tax on your home if all of these apply:

You have one home and have lived in it as your main home for all the time you owned it.
You have not let part of it out. A lodger does not count as letting.
You have not used part of it exclusively for business.
The grounds, including all buildings, are less than 5,000 square metres (just over an acre).
You did not buy it just to make a gain.

If all apply, Private Residence Relief is automatic. If one does not, some tax may be due on part of the gain. Married couples and civil partners can count only one main home at a time.

Part 4 of 9

Capital Gains Tax on other property

GOV.UK lists property that is not your home as something you may pay tax on when you sell, including buy-to-let property, business premises, land and inherited property. Inheriting does not itself trigger the tax, but selling can, on any gain since the date you inherited (market value at that date is used if you do not know the Inheritance Tax value). For a full walk-through, see capital gains tax when you sell a house, and our Capital Gains Tax calculator.

Part 5 of 9

How the gain is worked out

GOV.UK says your gain is usually the difference between what you paid and what you sold for. You can deduct the costs of buying, selling or improving the property, including estate agents' and solicitors' fees and works such as an extension. Normal maintenance such as decorating does not count. For jointly owned property you work out the gain only on your share. The tax-free allowance is £3,000 for 2026 to 2027.

Part 6 of 9

The rates and two worked examples

For 2026 to 2027 GOV.UK gives 24% for higher and additional rate taxpayers and 18% on gains that fall within the basic rate band (£37,700 for 2026 to 2027), with 24% above it. Trustees and personal representatives pay 24%. Our examples assume a higher rate taxpayer with no other gains, so the whole gain is taxed at 24%. They are illustrations, not typical results.

	Example 1	Example 2
Sale price	£320,000	£400,000
Purchase price	£280,000	£340,000
Selling costs and allowable improvements	£6,000	£8,000
Gain	£34,000	£52,000
Less tax-free allowance	£3,000	£3,000
Taxable gain	£31,000	£49,000
Tax at 24%	£7,440	£11,760

A basic rate taxpayer would pay 18% on the part of the gain inside the remaining basic rate band, so their bill could be lower. If your total gains are below the allowance, UK residents do not have to report online.

Part 7 of 9

The 60 day rule

GOV.UK says you must report and pay within 60 days of completing the sale of a UK residential property if there is Capital Gains Tax to pay. It warns that you may have to pay interest and a penalty if you do not report and pay on time. Diarise the date as soon as you exchange, and keep your purchase paperwork and fee invoices.

Part 8 of 9

Income Tax on rent before the sale

If you let the property, rent is taxed separately from the sale. GOV.UK says the first £1,000 of rental income is tax-free under the property allowance, and you must report on Self Assessment if income is over £2,500 after allowable expenses or over £10,000 before. Individuals cannot deduct mortgage interest from the profit. Our article on the costs of selling lists the other bills that come with a sale.

Part 9 of 9

What to do next

Work out whether the property qualifies for Private Residence Relief, collect your purchase price and fee records, and put the 60 day date in your diary. If your situation is unusual, such as a part-let home, a long absence or an inherited property, speak to a qualified tax adviser or HMRC before you complete.

This page is general information, not advice.

Our take

Know your tax position before you price the sale

The sale price is not what you keep. The common mistake is to forget that Capital Gains Tax is due within 60 days on a second home or inherited property, while a main home usually has no tax to pay. Work out the gain first, then compare routes on what lands in your account.

Our sale method comparison sets auction, estate agent and cash buyer side by side on net proceeds and timescale, and our free house value check gives a range from real sold prices so you know the likely sale price.

Compare sale routes

Our opinion, drawn from the facts on this page: not advice and not a forecast. We earn from OfferCheck reports and from introducing sellers to cash buyers, so weigh it with that in mind (see our disclosure). We are not authorised or regulated by the FCA.

Questions, answered

Frequently asked questions

Do you pay stamp duty when you sell a house?

No. GOV.UK describes Stamp Duty Land Tax as paid by the person buying or being transferred the property. If you buy your next home, you pay it on that purchase.

Do you pay tax when you sell your main home?

Usually no Capital Gains Tax. GOV.UK says relief is automatic if it is your only home, you lived in it throughout, you did not let part out, the grounds are under 5,000 square metres and you did not buy it to make a gain.

When do you pay Capital Gains Tax on a house?

You may pay on a gain from property that is not your home, such as buy-to-let, a second home or inherited property. For UK residential property, report and pay within 60 days of completion.

What is the Capital Gains Tax allowance?

GOV.UK gives a tax-free allowance of £3,000 for 2026 to 2027. UK residents with total gains below it do not have to report online.

Do I pay tax on selling an inherited house?

You may pay Capital Gains Tax on any gain since you inherited it. GOV.UK says to use market value at that date if you do not know the Inheritance Tax value. Inheriting itself does not trigger Capital Gains Tax.

Where this comes from

Sources

Last reviewed 5 November 2026 by the Your Property Check team. This page is general information, not legal, tax or financial advice. For your own situation, speak to a conveyancing solicitor or another qualified professional.