{"id":23775,"date":"2023-02-27T10:28:49","date_gmt":"2023-02-27T10:28:49","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=23775"},"modified":"2025-02-11T17:05:36","modified_gmt":"2025-02-11T17:05:36","slug":"when-do-i-owe-cgt-if-i-sell-my-house","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/landlord-tax-returns\/when-do-i-owe-cgt-if-i-sell-my-house\/","title":{"rendered":"When do I owe CGT if I sell my house?"},"content":{"rendered":"\n<p>Thinking of selling up but not quite sure where you stand with capital gains tax? Or what that even is? We\u2019ve got you covered! Keep reading to find out when you owe CGT if you sell your house.\u00a0But, before we start, take a look at the current rates of capital gains tax.<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-neutral m-align-left\">\n    <div class=\"b-block-body\">\n        <p><b>Capital gains tax<\/b><span style=\"font-weight: 400;\"> rates in the 2025\/26 tax year. It\u2019s paid on profits over the \u00a33,000 CGT allowance \ud83d\udc47<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Type of asset<\/b><\/td>\n<td><b>Basic rate<\/b><\/td>\n<td><b>Higher rate<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Shares<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Residential property<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">24%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Bitcoin\/cryptocurrency<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Other<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n\n<h2 class=\"wp-block-heading\">So, what\u2019s capital gains tax?<\/h2>\n\n\n\n<p><a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/capital-gains-tax-cgt\/\" target=\"_blank\" rel=\"noreferrer noopener\">Capital gains tax<\/a> is the tax you pay when you sell an asset. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"embed-container\"><iframe loading=\"lazy\" title=\"Tax in 10(ish) seconds - what is Capital Gains Tax?\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/ZUdtnBFew8o?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<p>When it comes to property, you\u2019ll only owe capital gains tax on the profit you make when you sell or give away a house that isn&#8217;t your main home i.e a rental property or second property. This is where the private residence relief comes into play\u2026<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What\u2019s the private residence relief?<\/h2>\n\n\n\n<p>You don\u2019t have to pay capital gains tax when you sell (or give away) your home if <em>all<\/em> of the following apply:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You have a home which you\u2019ve consistently lived in (and haven\u2019t <a href=\"https:\/\/www.gov.uk\/tax-sell-home\/let-out-part-of-home\" target=\"_blank\" rel=\"noreferrer noopener\">let part of it out<\/a>)<\/li>\n\n\n\n<li>You didn\u2019t buy it just to make more money than what you bought it for \ud83e\uddd0<\/li>\n\n\n\n<li>Part of your home isn\u2019t used exclusively for business purposes<\/li>\n\n\n\n<li>The grounds, including all buildings, are less than 5,000 square metres (just over an acre) in total &#8211; you might need to get out the measuring tape for this one &#8211; a very long one too \ud83d\ude05<\/li>\n<\/ul>\n\n\n\n<p>If all these apply, well great news! You\u2019re automatically entitled to the private residence relief, meaning you won\u2019t have to pay capital gains tax.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What if I used to rent out my main home?<\/h2>\n\n\n\n<p>Ah. So you\u2019ve previously rented your property to a tenant, but then decided you\u2019d rather just live there yourself. And now you\u2019re wondering whether you\u2019ll have to pay capital gains tax.<\/p>\n\n\n\n<p>That\u2019s a bit of a sticky one so listen up!\ud83d\udc42<\/p>\n\n\n\n<p>In short, yes, you have to pay capital gains tax. But you can also claim the private residence relief.&nbsp;<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-blue m-align-left\">\n    <div class=\"b-block-body\">\n        <h2>How it works<\/h2>\n<p><!-- wp:paragraph --><\/p>\n<p>You\u2019ve owned a home for 20 years, but only lived in it for 15 of the 20 years. The other 5 years, you rented it to a tenant. You sell this home and make a gain on this sale.<\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:paragraph --><\/p>\n<p>You can claim the private residence relief for the time you lived there which is 15 years. But not for the entire 20 years. You\u2019ll have to work out how much capital gains tax you owe for the 5 years you were renting your property out.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<h2 class=\"wp-block-heading\">What if I only let out part of my home?<\/h2>\n\n\n\n<p>In this case, you\u2019ll still be able to claim the private residence relief, but only for the portion of your home that you lived in (again, you might want to get out the measuring tape to work this one out \ud83e\uddd0).<\/p>\n\n\n\n<p>Even though you don\u2019t have to pay capital gains tax for the portion of your home you lived in, you still have to pay capital gains tax on the remaining portion if a gain is made.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How do I pay capital gains tax on property?<\/h2>\n\n\n\n<p>If you sell your property and owe capital gains tax, you can report and pay by using either:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/real-time-cgt-service\/\">capital gains real-time service&nbsp;<\/a><\/li>\n\n\n\n<li>Your <a href=\"https:\/\/www.access.service.gov.uk\/login\/signin\/creds\">government gateway account<\/a> (you\u2019ll then have to add \u2018capital gains tax on UK property account\u2019 as a service)<\/li>\n<\/ul>\n\n\n\n<p>\u231bBe warned: you have 60 days from the day you sold your property to report and pay any capital gains tax you owe. \u231b<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Need tax advice?<\/h2>\n\n\n\n<p>If you\u2019re selling your home and want to know where you stand with capital gains tax, one of our accredited accountants can help you with that. Find out more <a href=\"https:\/\/taxfix.com\/en-uk\/tax-advice\/\">here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Thinking of selling up but not quite sure where you stand with capital gains tax? Or what that even is? We\u2019ve got you covered! Keep reading to find out when you owe CGT if you sell your house.\u00a0But, before we start, take a look at the current rates of capital gains tax. So, what\u2019s capital [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[453,452],"tags":[416,70,421],"class_list":["post-23775","post","type-post","status-publish","format-standard","hentry","category-general-landlord-faqs","category-landlord-tax-returns","tag-benefits-reliefs-grants","tag-capital-gains-tax","tag-property"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>When do I owe CGT if I sell my house? &#8211; Taxfix<\/title>\n<meta name=\"description\" content=\"You can owe CGT when you sell your house if you&#039;ve lived in it but rented it out to tenants as well. 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