Most people assume that when you sell your home, there is no tax. Are they right? Tristan Noyes explores when they could be wrong or right twice!â¯
In 2024, Angela Rayner was asked whether she paid tax on the sale of her ex-council house. She said no because it was her main residence, which was exempt from capital gains tax CGT). Like many people, she assumed that selling her home resulted in no tax.
In many cases, this is correct; if you have one house with a modest garden and live in it throughout, any capital gain will normally be exempt from capital gains tax (CGT) due to main residence relief, more commonly known as principal private residence (PPR) relief.
Not fully covered?
However, full exemption is not guaranteed. The gain must be apportioned where:â¯
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part of the property is not used exclusively as a residence (e.g., if part of
