When you sell your house, it isn't as easy as a buyer transferring money equivalent to the value of your home into your bank account.
There are a range of fees and taxes that apply when you sell your home, which you need to be aware of before going through the process.
From capital gains tax (CGT) to stamp duty land tax (SDLT), here is a quick breakdown of factors to consider when selling your home.
Stamp Duty Land Tax (SDLT)
SDLT must be a key consideration during any home buying or selling process.
Although you do not pay SDLT if you are selling your home (this is paid by the buyer), this tax factors into buyers purchasing decisions and influences the likelihood of them buying your home.
SDLT is a tax paid when individuals buy property in England or Northern Ireland and applies to both residential and commercial properties.
This tax is only paid on properties above a certain threshold - which is due to change in April. You can read more about the pending changes on wbw.co.uk.
If you are looking to sell, it will be worth bearing in mind the additional costs to a buyer due to the SDLT, which could make or break their decision to purchase your home. Selling your home to a private online home-buying company provides a way to avoid the uncertainty of this factor in buyers from the market.
When selling with an online house buying company like Sold.co.uk, these companies use their own finances to get you a guaranteed sale, promising to speed up the selling process and transfer funds quickly. Therefore, if you are concerned about the changes to the SDLT, selling in this way may provide a solution.
Capital Gains Tax (CGT)
CGT is the tax you pay on the profit made when you sell a house that has increased in value. CGT is only payable when you are selling a second home or a buy-to-let property, or if you are selling an inherited home that has increased in value since coming into your possession.
If you are selling your main home, you don't need to worry about CGT as you are exempt under Private Residence Relief (PRR). A breakdown of the different the inclusions and exemptions can be found on Which.co.uk.
Essentially, you pay a percentage of your gain as CGT. For example, if you buy a house for £200,000 and sell it for £300,000, you pay tax on the £100,000.
However, there is a £3,000 allowance per person as of 2025, and the rate paid depends on the income tax bracket of the seller. The basic rate is 18% versus a higher rate of 24%. So buyers would pay either 18% or 24% on the £97,000 gained.
It will be key to work out your own personal rates that are applicable before selling your house.
Being Aware of Applicable Taxes
SDLT and CGT are two of the main taxes that affect a home buying process. The rates for each tax can differ drastically between individual cases, so it's important to know what each one is and how they might impact the financial status of your sale.
