If you're selling your main home you won't have to pay Capital Gains Tax on it, as long as:
- Any expenditure you made on it was done because it was a home, not just to make a profit
- The property was your only home when you owned it (ignoring the last 3 years of ownership)
- It was used as a home throughout the time you owned it
- You didn't have more than one lodger
- The area of the garden + house doesn't exceed 5000 square metres.
Even if you don't meet all these requirements you may qualify for 'private residence relief'. This is meant to ensure that most people don't pay Capital Gains Tax when selling their home. If you're unsure whether or not you should be paying tax when selling your home, ask your local tax office:
http://search2.hmrc.gov.uk/kbroker/hmrc/locator/locator.jsp?type=1
I'm not selling my main home
If you're not selling your main home, you'll probably have to pay Capital Gains Tax. You can deduct some of the costs of buying, selling and improving the property, as well as offset any losses you make on a property. You have to pay your Capital Gains Tax when completing your annual tax return, or if you don't usually complete one, by telling your local Tax Office.
For more information on Capital Gains Tax see the government's advice page: http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/DG_4016313
