Query about HMRC considerations when selling one’s home

Query about HMRC considerations when selling one’s home

8:43 AM, 26th August 2014, About 10 years ago 5

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This is a very simplistic question from a person with a non-business background.  Query about HMRC considerations when selling one's home

If a person sells their home (their one and only property in which they live) how much of the profit goes to HMRC?

Is it the responsibility of the seller to notify HMRC of the sale or does the solicitor sort this aspect (the seller concerned is an employee earning around £20k per year gross with no mortgage on their home and would not be familiar with completing tax returns etc.)

Also, are there any other fees associated with selling one’s home that this person should be made aware of?

Thanks

Theresa


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Mark Alexander - Founder of Property118

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8:52 AM, 26th August 2014, About 10 years ago

Hi Theresa

There should be no tax payable but I am going to have to qualify my answer with the following proviso's:-

1) The property is in the UK.
2) The owner lives and works in the UK and has not claimed non-resident status (if the property is sold after April 2015 this could change things).
3) That the property has never been let
4) That there is no commercial element to the property.

If any of the above apply please let me know which.

With regards to other costs of selling there will be estate agents fees (typically 1.5%) and solicitors fees and disbursement which will also be based on the price but tend to be circa £1,000 for an average value property.

The purchaser will pay stamp duty (if the property is over £125,000) plus legal fees associated with conveyancing, searches and dealing with mortgage lenders (again typically around £1,000). If there is a mortgage then a valuers fee and a lenders fee will be payable. Many purchasers also like to have a homebuyers report done (full survey to look into defects), especially if the property is an older one, for their own peace of mind.

I hope that helps.
.

mrs sharp

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11:20 AM, 26th August 2014, About 10 years ago

Thanks for your reply Mark, none of the four provisos apply in that the person has always lived in the home, no commercial element and the home has never been let. Regards Theresa

sally lloyd

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10:25 AM, 27th August 2014, About 10 years ago

Hi Mark,

I was wondering does having a lodger give a commercial aspect to your home?

Mark Alexander - Founder of Property118

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10:57 AM, 27th August 2014, About 10 years ago

Reply to the comment left by "sally lloyd" at "27/08/2014 - 10:25":

I don't believe it does, but please check directly with HMRC or an accountant just in case there are any exceptions I may have overlooked.
.

sally lloyd

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13:11 PM, 27th August 2014, About 10 years ago

thankyou

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