capital gains tax on house sale
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Capital gains tax on house sale

(Last Updated: 08/12/2023)
5 min read
Capital gains tax is declarable to HMRC for any property (house or flat) that you sell and isn't your Principle Private Residence (PPR). The capital gain needs to be declared and paid within 60 days of the sale of most UK properties using a Self Assessment: Capital gains summary SA108 Form.

To work out if you have a capital gains tax on your house sale, you deduct off the purchase prices, sale and purchase costs and then deduct the Capital gains tax allowance. Then, if there is a gain, you pay tax at the applicable rate.

You can declare if the second property was your main residence for a period of time.

What rate of capital gains tax is payable on sale of house?

The Capital Gains Tax on residential sale profit is as follows:
Tax Band
Income Tax Band 
Capital Gains Tax Rate (chargeable on profits)
Basic rate income tax payer
£0 to £50,270
Higher rate income tax payer
Over £50,271
24% (post 6th March 2024 budget)
Non-UK Residents pay a flat rate of 28% for any gain.
You have a tax free allowance of £3,000 for 2023-24.

Does the capital gains tax account for if I lived in the property?

Where you have lived in the property as your PPR, then you don't pay capital gains tax for that period of time.

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Andrew Boast of Sam Conveyancing
Written by:
Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
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Caragh is an excellent writer in her own right as well as an accomplished copy editor for both fiction and non-fiction books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey and mortgage related articles.

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