Buying and selling property: every tax, in order
One picture of the four moments property is taxed, and the saving hiding in each one.
Property3 min readAnyone buying, selling or inheriting a home.
The short answer
- Property is taxed at four moments only: when you buy, while you own, when you rent it out, and when you sell.
- Your own home is usually free of tax on the gain when you sell it.
- The biggest savings are timing the sale and claiming every cost you paid.
Buying tax
Stamp duty
UK, plus state duty in Australia
Selling your home
Usually 0%
Main home relief in all three
Selling a rental
Capital gains
18% or 24% in the UK
How it works, in one picture
- 1
You buy
Stamp duty in the UK, transfer duty in Australia, closing costs in the US
- 2
You own
Council tax, property tax, land tax over a state threshold
- 3
You rent it out
Rent is income, minus allowable costs
- 4
You sell
Gain is taxed, unless it was your main home
- Your own home£0
Main home relief
- Basic rate owner£17,460
18% after the £3,000 exempt amount
- Higher rate owner£23,280
24% after the £3,000 exempt amount
Do it in this order
- 1Keep the purchase file: price, legal fees, duty paid, survey. All of it reduces the gain later.
- 2Keep every improvement receipt. A new kitchen counts, a repaint does not.
- 3Before you sell, check whether the gain fits in this tax year or the next one. Two years means two exempt amounts.
- 4If you own it jointly, both people get their own allowance. Transfers between spouses are usually tax free.
- 5Tell the tax office on time. The UK gives 60 days after completion on a residential gain.
Only if you want the detail
The costs that quietly cut your bill
Most people declare the sale price and forget everything they spent.
Country by country, in one line each
Same four moments, different names.
What people get told, and what is true
I never pay tax when I sell a house.
True for your main home. A second home or rental is taxed on the gain.
Reinvesting the money avoids the tax.
Buying something else does not remove the tax on the gain you made.
Now do it on your numbers
Reading is the easy half. The saving comes from applying this to your income, your country and this tax year, with the deadline written down.
Where this comes from
General guidance, not personal advice. Anything involving a company, a trust or another country should be checked by a qualified accountant or tax adviser before you act.
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