Private renting for tenants: evictions

Rules your landlord must follow

Your landlord must follow strict procedures if they want you to leave their property, depending on the type of tenancy agreement you have and the terms of it.

If they do not, they may be guilty of illegally evicting or harassing you.

Your landlord must follow different procedures to evict you in Northern Ireland and Scotland.

Rules for periodic Assured Shorthold Tenancies (ASTs)

Periodic tenancies run on a week-by-week or month-by-month basis with no fixed end date.

If you have one of these, your landlord must usually give you ‘notice to quit’ - they must do this in a certain way depending on your type of tenancy agreement and its terms.

Notice periods

There are different eviction notice periods in Wales.

In England, your landlord usually must give you up to 2 months’ notice. Because of coronavirus (COVID-19), the notice periods are longer.

If you were given notice between 26 March 2020 and 28 August 2020, your landlord must have given you 3 months to leave the property.

If you were given notice between 29 August 2020 and 31 May 2021, your landlord must have given you 6 months to leave the property

If you’ve been given notice since 1 June 2021, your landlord must give you 4 months to leave.

If you do not leave at the end of the notice period

If you do not leave at the end of the notice period, your landlord must apply to the court for a possession order. If the court gives them a possession order and you still do not leave, they must apply for a warrant for possession - this means bailiffs can evict you from the property.

From 1 June 2021 bailiffs can carry out evictions if you live in England. In Wales, currently you will not be evicted unless there’s a serious reason, such as if you’re living there illegally or committing anti-social behaviour.

Rules for fixed-term ASTs

Fixed-term tenancies run for a set amount of time. Your landlord must give you notice in a certain way if you’re in a fixed-term tenancy.

Notice periods

In England, your landlord usually must give you up to 2 months’ notice. Because of COVID-19, the notice periods are longer.

If you’ve been given notice since 1 June 2021, in most cases your landlord must give you 4 months to leave.

If you refuse to leave at the end of the notice period, the rules depend on whether the fixed term has ended or not.

Eviction during the fixed term

During the fixed term, your landlord can only evict you for certain reasons - for example:

you have not paid the rent

you’re engaging in antisocial behaviour

there’s a ‘break clause’ in your contract - this allows your landlord to take back the property before the end of the fixed term

A possession order will not take effect until you’ve been living in the property for at least 6 months.

Eviction at the end of the fixed term

At the end of the fixed term, the landlord does not need a reason to evict you. As long as they’ve given you correct notice, they can apply to the court for a possession order.

If the court gives your landlord a possession order and you still do not leave, your landlord must apply for a warrant for possession - this means bailiffs can evict you from the property.

Rules for excluded tenancies or licences

If you have an excluded tenancy or licence (for example you live with your landlord), your landlord does not have to go to court to evict you.

Your landlord only needs to give you ‘reasonable notice’ to quit. The notice does not have to be in writing.

There are no set rules about what’s reasonable. It depends on:

how long you’ve been living there

how often you pay the rent

whether you get on with your landlord

how quickly the landlord needs another person to move in

They can then change the locks on your rooms, even if you’ve left your belongings there. However, they must give your belongings back to you.

If you do not think you’ve been given enough warning to leave, contact your local council for advice. Your council can take action if your landlord has evicted you illegally.

Shelter has more information about eviction of excluded occupiers.

Rules for assured and regulated tenancies

If your tenancy started before 27 February 1997, you might have an assured or a regulated tenancy. Your landlord will have to follow different rules to evict you and you’ll have increased protection from eviction.

There are different eviction notice periods in Wales.

If you’ve been given notice on or after 29 August 2020, your landlord must give you 6 months to leave. You might have to leave much sooner if you’re evicted using a section 8 notice, depending on the reason for eviction.

Shelter has more information about assured tenancies and regulated tenancies.

Shelter Cymru has more information about assured tenancies and regulated tenancies in Wales.

Accelerated possession

Landlords can sometimes evict tenants using ‘accelerated possession’. This is quicker than a normal eviction and does not usually need a court hearing.

Your landlord can only do this if:

you have an assured shorthold tenancy or a statutory periodic tenancy

you have a written tenancy agreement

they’ve given you the required written notice in the right form

they have not asked you to leave before the end of a fixed-term tenancy

Your landlord must also tell the court if you and your dependants have been affected by coronavirus (COVID-19) in a way that affects the case. For example, if you lost income because of COVID-19 which meant you were not able to pay rent.

You can only stop accelerated possession if you can prove your landlord has not followed the rules listed above.

How it works

If your landlord applies for accelerated possession, the court will send you:

a copy of your landlord’s application

a ‘defence form’

Fill in the defence form to challenge the application or write a statement outlining your circumstances.

If your case is affected by COVID-19, include details. For example, why you lost income and were not able to pay rent.

You can get help filling in the defence form.

You must complete and return the defence form or statement to the court within 14 days of receiving it.

If your landlord applied for possession before 3 August 2020

If your landlord wants to continue with their claim for possession they must make another application to the court. You will get a copy of your landlord’s application and instructions from the court on how to challenge the application.

The judge’s decision

A judge will decide whether to:

issue a possession order, giving your landlord the right to evict you and take possession of the property (this is normally the case)

have a court hearing (this usually only happens if the paperwork is not in order or you’ve raised an important issue)

Even if there’s a hearing, the court can still decide to issue a possession order.

If the judge issues a possession order

If the judge makes a possession order, you’ll normally have 14 or 28 days to leave the property. If this will cause you exceptional hardship, the judge may give you up to 42 days to leave.

If you do not leave at this point, your landlord can use bailiffs to evict you.

Eviction court hearings

If your landlord goes to court to evict you, there will be a ‘possession hearing’.

Before the hearing

You’ll know your landlord is taking you to court to evict you because you’ll be sent court papers, including:

copies of ‘claim for possession’ forms

a defence form

a date for your court hearing

The defence form is your chance to say why you have rent arrears and if you disagree with what your landlord put on the ‘claim for possession’ forms. You need to return it within 14 days.

You may have to pay extra court fees if you do not provide information in the defence form and this results in a delay to your court case.

If you do not attend your court hearing, it’s very likely the judge will decide you’ll lose your home.

Coronavirus (COVID-19) and court hearings

The court process is different because of COVID-19.

Your landlord must tell the court if you and your dependants have been affected by COVID-19. For example, if you have lost income because of COVID-19, which meant you were not able to pay your rent.

During the hearing

If you have not received advice before, you can get free legal advice and representation in court on the day of the hearing. This is under the Housing Possession Court Duty scheme. Contact your local council or the court where your case is being heard.

If the scheme is not available in your area, check with the court whether there are other advice services. You can also check if you can get legal aid.

The charity Shelter has information on what happens at a possession hearing.

The judge’s decision

The judge could:

dismiss the court case - no order will be made and the hearing is finished

adjourn the hearing - the hearing will be delayed until later, as the judge feels a decision cannot be made on the day

make an ‘order’ - the judge will make a legal decision on what will happen

The judge will dismiss the case if there’s no reason you should be evicted. This might happen if:

your landlord has not followed the correct procedure

your landlord or their representative does not attend the hearing

you’ve paid any rent arrears

If the judge dismisses the case, you can stay in your home. If the landlord wants to evict you, they’ll have to restart the court process from the beginning.

Types of possession order

There are several different kinds of orders a judge can make.

Order for possession (or ‘outright possession order’)

This means you must leave the property before the date given in the order.

The date will be either 14 or 28 days after your court hearing. If you’re in an exceptionally difficult situation, you may be able to convince the judge to delay this for up to 6 weeks.

If you do not leave your home by the date given, your landlord can ask the court to evict you by asking for a ‘warrant for possession’. If the court gives a warrant, you’ll be sent an eviction notice that gives a date when you must leave your home.

Suspended order for possession

This means if you make the payments, or obey the conditions, set out in the order, you can stay in your home. If you do not make the payments, your landlord can ask the court to evict you.

Money order

This means you have to pay the landlord the amount set out in the order. If you do not make the payments, action could be taken by the courts to recover the money, including:

deducting money from your wages or bank account

sending bailiffs to take away things you own

If you get into rent arrears after a money order has been made, your landlord can go to court again and ask for a possession order.

Possession orders with a money judgment

A judge can add a money judgment to any of the possession orders. This means you owe a specific amount of money, usually made up of:

your rent arrears

court fees

your landlord’s legal costs

The money judgment will not apply if you pay your arrears and the amount set out in a suspended possession order.

However, the money judgment will apply if you do not pay the amount set out in the suspended possession order that’s linked to the judgment. If you do not pay, the landlord may ask the court to carry out the instructions in the order and the judgment.

Eviction notices

If you do not leave your home by the date given in an outright possession order, your landlord can ask the court for a ‘warrant of possession’.

If the court gives a warrant, you’ll be sent an eviction notice that gives a date when you must leave your home. Bailiffs can evict you after this date. The costs of evicting you will be added to the money you owe.

Changes to evictions in England and Wales because of coronavirus (COVID-19)

From 1 June 2021 bailiffs can carry out evictions if you live in England.

In Wales, currently you will not be evicted by bailiffs, unless there is a serious reason. Bailiffs will only enter the property if you:

are living there illegally

have been involved in antisocial behaviour

Delaying eviction

You can ask a judge to suspend the warrant at a new hearing. This means they’ll delay the eviction or let you stay in your home if you can make payments again.

The judge will not automatically agree to suspend the warrant.

Applying to suspend a warrant

To apply for a suspension of a warrant, you must fill out an application notice and either send or deliver it to the county court dealing with your case.

You must tell the court you need a hearing at short notice (before your eviction date). You’ll have to pay a court fee of £14, unless you qualify for help.

Pay the county court:

by phone with a debit or credit card

by post with a cheque or postal order made out to ‘HM Courts and Tribunals Service’

in person with cash or a debit or credit card

You can find the address and phone number for the county court online.

Asking the court to change your payments

If your circumstances change, you can ask a judge at a new hearing to change what you pay. To do this, you must fill out an application notice and either send or deliver it to the county court dealing with your case.

You’ll have to pay a court fee of £100, unless you qualify for help.

Pay the county court:

in person by cheque, cash, debit or credit card

by post with a cheque made out to ‘HM Courts and Tribunals Service’

Appealing against the decision

You can only appeal if you can show the judge made mistakes in the original possession hearing. You’ll need to ask the judge for permission to appeal at the end of the original hearing.

If you get permission to appeal, you’ll have to apply for an appeal hearing very soon afterwards. You’ll have to pay a court fee of up to £140, unless you qualify for help.

You’ll need to get legal advice.

Contact your local council

If you’re worried about becoming homeless, contact your local council for homelessness help and advice.

Harassment and illegal evictions

It’s a crime for your landlord to harass you or try to force you out of a property without using proper procedures. If this happens, you may have a right to claim damages through the court.

What is harassment?

Harassment can be anything a landlord does, or fails to do, that makes you feel unsafe in the property or forces you to leave.

Harassment can include:

stopping services, like electricity

withholding keys, for example there are 2 tenants in a property but the landlord will only give 1 key

refusing to carry out repairs

anti-social behaviour by a landlord’s agent, for example a friend of the landlord moves in next door and causes problems

threats and physical violence

Illegal eviction and tenants’ rights

Your landlord may be guilty of illegal eviction if you:

are not given the notice to leave the property that your landlord must give you

find the locks have been changed

are evicted without a court order

Even if your landlord’s property is repossessed by their mortgage lender, the lender must give you notice so you can find other accommodation.

If you have an assured, assured shorthold or regulated tenancy, they must give you:

3 months to leave the property if you were given notice between 26 March 2020 and 28 August 2020

6 months to leave if you were given notice between 29 August 2020 and 31 May 2021

4 months to leave if you’ve been given notice since 1 June 2021

In Wales, the notice period must be:

at least 6 months if they gave you notice on or after 24 July 2020

at least 3 months if they issued a section 8 notice for antisocial behaviour

Citizens Advice has information on repossession by your landlord’s mortgage lender.

What you can do

If you think you’re being harassed or threatened with illegal eviction, or the property you rent is being repossessed, talk to your local council.

It may have someone specialising in tenant harassment issues.

Local councils can also start legal proceedings if they think there’s enough evidence of harassment or illegal eviction.

You could also contact a legal adviser, a Citizens Advice office or Shelter’s housing advice helpline.

Your local area may also have other housing or legal advice organisations - your local council, phonebook or library should have details.

If physical violence is involved, contact the police.

For further advice, the Ministry of Housing, Communities and Local Government has a detailed guide for tenants facing harassment and illegal eviction.


Repossession

Get advice

You may be able to postpone or stop your home being repossessed.

Check if you can get legal aid to help with your legal costs. You can get advice from Civil Legal Advice if you’re eligible.

Find a solicitor.

You can also get free advice from:

Citizens Advice

National Debtline

Shelter

your local council

The law for repossession in Scotland is different.

Before it goes to court

What your mortgage lender must do

Before a mortgage lender can repossess your home, they must:

tell you how much you owe

consider a request from you to change the way you pay your mortgage

respond to any offer of payment you make

give you reasons for turning down your offer of payment within 10 days

give you a reasonable amount of time to consider any proposal they make

give you 15 days’ written warning if they plan to start court action

tell you the date and time of a repossession hearing

let your council know within 5 days of getting notification of the date of the court hearing, in case you need to apply to the council as homeless

Finding a solution

Even if your mortgage lender starts a court action, you may still be able to reach an agreement with them.

You’ll still need to attend court to tell the judge about the agreement, unless the court tells you the hearing’s been cancelled or postponed.

Defence form

If your lender starts a repossession action against you, the court will send you a blank defence form and guidance on how to fill it in.

You can use the form to explain why you think the lender should not repossess your home. You need to return it within 14 days.

The court will also send you:

copies of the claim forms for possessing your home, filled in by your lender

a court hearing date

the court’s contact details

Help with legal costs

Legal aid

If you’re on a low income you may be able to get legal aid.

Free legal advice on the day

If you have not got help before, you can get last-minute legal help under the Housing Possession Court Duty scheme.

The scheme runs in county courts in England and Wales. It provides you with a specialist adviser on the day of your hearing who can:

represent you

help you come to an arrangement with your mortgage lender to pay off your debts

To find out about the scheme in your area, contact your local council or the court where your case is being heard.

The hearing

Repossession hearings normally take place in a judge’s chambers, not in a court room (although it’s treated as a court).

You can bring an adviser or friend to the hearing, although they must be an adult.

If you do not attend the court hearing, it’s likely the judge will give your mortgage lender the right to evict you.

You must keep to any agreement you make in court to pay off arrears. If you do not, you may still risk losing your home.

What to bring with you

You’ll likely be asked for proof of your finances. This can include:

payslips

bank statements

job offers

letters about benefits

estate agent letter, for example if you’re trying to sell your home to pay off the mortgage

Repossession orders

The lender can only repossess your home if the court grants permission.

The judge could decide to:

adjourn (delay) the hearing

set aside the case, which means no order will be made and the hearing is finished

make a repossession order

Outright possession order

This gives the lender a legal right to own your home on the date given in the order and is sometimes called an ‘order for possession’. This is usually 28 days after your court hearing.

If you do not leave your home by the date given in the order, your lender can ask the court to evict you.

Suspended possession order

This means that if you make regular payments as set out in the order, you can stay in your home.

If you do not make the payments, your lender can ask the court to evict you.

Money order

This means that you have to pay the lender the amount set out in the order.

If you do not make these payments:

money could be deducted from your wages or bank account

bailiffs may take away things you own

Your lender cannot use a money order to evict you from your home. If you do not make payments set out in a money order on time, your lender could go to court again. As a result, the judge could decide to give them a possession order.

Possession order with money judgment

A money judgment is usually added to a possession order. It means you owe a specific amount of money usually made up of:

your mortgage arrears

court fees

your lender’s legal costs

A money judgment will not apply if:

you pay your mortgage arrears and any amount set out in a suspended order

your lender sells your home and the sale price is more than the amount set out in the money judgment

If you do not pay the amount set out in the money judgment, the lender may ask the court to carry out the instructions in the possession order and the judgment.

Time order

This means that the judge changes the amount you pay on your mortgage for a set time by:

changing the regular amount you pay

changing the interest rate on your mortgage

delaying the next time you have to make a payment

A time order is usually only made on some types of loan like a second mortgage.

Delaying eviction

You can ask a judge to ‘suspend the warrant for possession’. This means delaying the eviction or allowing you to stay in your home if you are able to make payments again.

A new hearing will be held but the judge will not automatically agree to suspend the possession warrant – it depends what happens in court.

If you want to get a warrant suspended, get advice immediately.

Applying for a suspension

If you want to apply for a suspension, you should fill out the application notice and either send it or deliver it to the court.

You must tell the court that you need a hearing at short notice (before your eviction date). You’ll have to pay a court fee.

You may not have to pay the fee (otherwise known as ‘fee remission’) if you’re on benefits or low pay.

Appealing a judge's decision

If you think the judge made mistakes about the law or the facts of your case in the original hearing, you may be able to appeal.

Get legal advice if you want to appeal.

Normally the appeal will be heard by a more senior judge.

Permission to appeal

You can ask the judge at the end of your original possession hearing if you can appeal.

If the judge refuses to give permission to appeal, you can ask a more senior judge.

If you get permission, make an application as soon as possible after your original possession hearing. You’ll have to pay a court fee.

You may not have to pay the fee if you’re on benefits or low pay.

What could happen

At the appeal, the judge can make a number of decisions including:

keeping the original decision

dismissing the previous decision or changing it

ordering a new hearing

The judge can also decide who pays the legal costs of the appeal.

If your home is repossessed

Help from your council

Your local council must give you advice to help you find a new home.

Depending on your circumstances, they may also be able to provide you with emergency accommodation or a more permanent home.

Buying another property

You must tell any new mortgage lender that your previous home was repossessed. This could make getting a new mortgage hard.

Your previous lender may be able to claim some of the proceeds of your new home if you still owe them money when you sell it.


Squatting and the law

Overview

Squatting is when someone deliberately enters property without permission and lives there, or intends to live there. This is sometimes known as ‘adverse possession’.

Squatting in residential buildings (like a house or flat) is illegal. It can lead to 6 months in prison, a £5,000 fine or both.

Anyone who originally enters a property with the permission of the landlord is not a squatter. For example, if you’re renting a property and fall behind with rent payments you’re not squatting if you continue to live there.

Although squatting in non-residential building or land is not in itself a crime, it’s a crime to damage the property.

It’s usually a crime not to leave land or property when you’re instructed to do so by:

the owner

the police

the council

a repossession order

Squatting in non-residential properties

A non-residential property is any building or land that is not designed to be lived in.

Simply being on another person’s non-residential property without their permission is not usually a crime. The police can take action if squatters commit other crimes when entering or staying in a property.

Crimes include:

causing damage when entering the property

causing damage while in the property

not leaving when they’re told to by a court

stealing from the property

using utilities like electricity or gas without permission

fly-tipping

not obeying a noise abatement notice

Contact the police if you see someone breaking into or damaging property.

Squatters' rights to property

A long-term squatter can become the registered owner of property or land they’ve occupied without the owner’s permission.

Get legal advice from a conveyancer or solicitor if you’re a squatter in a property and want to claim ownership.

Who can apply

You can apply if you can prove:

you, or a succession of squatters, have occupied the property continuously for 10 years (12 years if it’s not registered with HM Land Registry)

you (or your predecessors) acted as owners of the property for the whole of that time

you (or any of your predecessors) did not have the owner’s permission, for example the property was not originally rented to a squatter

If the property’s registered

Fill in a form for adverse possession.

Complete and sign a written ‘statement of truth’, or get a solicitor to prepare this for you.

Send your form and statement to the HM Land Registry Citizen Centre.

HM Land Registry will decide if your application is valid and will let the property owner know. The owner has 65 days to object - your application will usually be automatically rejected if they do.

You’ll be registered as the owner of the property if there’s no objection.

You can apply again after 2 years if:

the owner has not tried to remove you

the property has not been reclaimed

you’re still in possession of the property

HM Land Registry will usually then register you as the owner.

If the property’s unregistered

Apply for first registration - include your statement with your application.

HM Land Registry will:

inspect the property - you must pay a fee for this

decide if your application is valid

let the property owner know, if they have their details

You can try to come to an agreement with the owners if they object. HM Land Registry will arrange a tribunal to decide who owns the property if you cannot agree or do not want to.

You may have to pay the costs of the owner, such as their reasonable legal fees, no matter what the outcome.

Stop squatters legally possessing property

HM Land Registry will tell you if squatters apply for legal ownership of your property if it’s registered - you must take action if you want to keep it.

Get legal advice from a conveyancer or solicitor if squatters try to claim your property.

How you block an application depends on whether your property is registered with HM Land Registry or not.

Registered properties

You’ve 65 days to object to an application - HM Land Registry will tell you what you need to do.

HM Land Registry will reject the squatters’ application if you’ve got a valid objection.

You must take action to remove the squatters and reclaim your property once the squatters’ claim is rejected.

You will not be able to object again if you’ve done nothing within 2 years of the original application and the same squatters reapply.

Unregistered properties

You can object to a squatter’s application. HM Land Registry will tell you what you need to do.

HM Land Registry may not be able to contact you if your property is not registered.

HM Land Registry will decide if your objection is valid - if it is they’ll ask if you want to negotiate with the squatters, for example offer to sell them the property. You’ll be given time to do so.

A tribunal will decide who owns the property if you cannot agree - HM Land Registry will arrange this.

Remove squatters

You can remove squatters using an interim possession order (IPO) or making a claim for possession.

Do not try to remove the squatters yourself using force or the threat of force - you’re committing a crime if you do.

Get legal advice from a solicitor if you need help making a claim for possession.

Interim possession orders

You can only apply for an IPO if it’s been 28 days or less since you found out your property’s been squatted.

Fill in an application for an IPO and send it to your local county court.

The court will send you confirmation of your IPO within a few days. They will also send you documents that you must give to the squatters within 48 hours.

After being served with an IPO squatters can be sent to prison if they do not:

leave your property within 24 hours

stay away from your property for 12 months

To get final possession of the property, you must make a claim for possession. You can do this on your IPO application form or separately online.

Exceptions

You cannot use an IPO if:

you’re also making a claim for damages caused by the squatters - instead you should make an ordinary claim for possession

you’re trying to evict former tenants, sub-tenants or licensees

Claim for possession

Make a claim for possession if it’s been more than 28 days since you found out about the squatters.

Where to get help

You may be classed as homeless if you’re squatting. Get advice from Shelter or Shelter in Wales.

You can also contact your council for help.

Report squatters

Call the police if you:

find people squatting in a residential property you own

see someone breaking into anywhere

think someone is squatting


Noise from roads, trains or planes

Vehicle noise limits

There are limits to the amount of noise that vehicles can make on public roads. This applies to all types of vehicles.

In general, larger vehicles with bigger engines are able to make more noise.

Noise limits on tyres

There are noise limits on tyres and since November 2012 all new tyres are graded and labelled to show how noisy they are.

Modified exhaust systems

It’s illegal to modify the exhaust system to make a vehicle noisier after it has been ‘type approved’ (checked it meets environmental and safety standards).

The police can also take action if your vehicle’s silencer doesn’t work in the way it was designed or if you’re driving in a way that creates too much noise.

Noise from roads

There’s no legal limit to road noise, although noise levels might be taken into account when new roads or houses and offices near roads are planned.

Planned new roads

When planning a new road local highway authorities assess how the noise at your property will change when the road opens.

If noise from a new road exceeds certain levels at your home you might be able to get sound insulation.

Contact your highway authority to apply, or if you’re worried about the noise from a planned road scheme - get their details from your local council.

Compulsory purchase and road noise

When a new road is built, it often involves the ‘compulsory purchase’ of land to make way for the road.

You might be able to get compensation if a compulsory purchase means you become affected by road noise. Find out more in the guide ‘Your property and compulsory purchase’.

After roads open to traffic

You can apply for compensation if your property value goes down because of road noise from the use of a new or altered road.

Railway noise

There are no legal limits to noise from existing railways.

If you think that noise levels are affecting your health contact your local council who will investigate on your behalf.

If noise from a new railway affects your property you might be able to get sound insulation for your home. Contact the relevant rail authority - ask your local council for their details.

If particular trains are causing you a problem, speak to the company running those trains.

Find information on train operators on the National Rail website or call Network Rail.

Aircraft noise

Noise is regulated to some extent at all UK airports. This can include noise limits and restrictions on night flights.

Aircraft paths are generally designed to fly over the least populated areas.

Some airports operate grant schemes to install sound insulation in affected homes. Contact the airport that affects you to find out if they run one.

The Civil Aviation Authority (CAA) has more information on aircraft noise and emissions.

Complaining about aircraft noise

To complain about noise or aircraft activities in general, get in touch with the relevant airport.

Military aircraft

Military aircraft are covered by different rules. You can complain about military aircraft noise or low flying military aircraft.

Further information

There are strategic noise maps for England provided by the Department for Environment, Food and Rural Affairs (Defra).

These estimate noise from:

major roads - those with more than 6 million vehicle passages annually

major railways - those with more than 60,000 train passages annually

major airports - those with more than 50,000 aircraft movements annually (except for training on light aircraft)

They also estimate noise in urban areas (with populations greater than 250,000 and a certain population density).


Capital Gains Tax

Overview

Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value.

It’s the gain you make that’s taxed, not the amount of money you receive.

Some assets are tax-free. You also do not have to pay Capital Gains Tax if all your gains in a year are under your tax-free allowance.

Disposing of an asset

Disposing of an asset includes:

selling it

giving it away as a gift, or transferring it to someone else

swapping it for something else

getting compensation for it - like an insurance payout if it’s been lost or destroyed

What you pay it on

You pay Capital Gains Tax on the gain when you sell (or ‘dispose of’):

most personal possessions worth £6,000 or more, apart from your car

property that’s not your main home

your main home if you’ve let it out, used it for business or it’s very large

shares that are not in an ISA or PEP

business assets

These are known as ‘chargeable assets’.

If you sell or give away cryptoassets (like cryptocurrency or bitcoin) you should check if you have to pay Capital Gains Tax.

Depending on the asset, you may be able to reduce any tax you pay by claiming a relief.

If you dispose of an asset you jointly own with someone else, you have to pay Capital Gains Tax on your share of the gain.

When you do not pay it

You only have to pay Capital Gains Tax on your total gains above an annual tax-free allowance.

You do not usually pay tax on gifts to your husband, wife, civil partner or a charity.

What you do not pay it on

You do not pay Capital Gains Tax on certain assets, including any gains you make from:

ISAs or PEPs

UK government gilts and Premium Bonds

betting, lottery or pools winnings

When someone dies

When you inherit an asset, Inheritance Tax is usually paid by the estate of the person who’s died. You only have to work out if you need to pay Capital Gains Tax if you later dispose of the asset.

Overseas assets

You may have to pay Capital Gains Tax even if your asset is overseas.

There are special rules if you’re a UK resident but not ‘domiciled’ and claim the ‘remittance basis’.

If you’re abroad

You have to pay tax on gains you make on property and land in the UK even if you’re non-resident for tax purposes. You do not pay Capital Gains Tax on other UK assets, for example shares in UK companies, unless you return to the UK within 5 years of leaving.

Capital Gains Tax allowances

You only have to pay Capital Gains Tax on your overall gains above your tax-free allowance (called the Annual Exempt Amount).

The Capital Gains tax-free allowance is:

£6,150 for trusts

You can see tax-free allowances for previous years.

You may also be able to reduce your tax bill by deducting losses or claiming reliefs - this depends on the asset.

Gifts to your spouse or charity

There are special rules for Capital Gains Tax on gifts or assets you dispose of to:

your spouse or civil partner

charity

The normal rules apply for gifts to others.

Your spouse or civil partner

You do not pay Capital Gains Tax on assets you give or sell to your husband, wife or civil partner, unless:

you separated and did not live together at all in that tax year

you gave them goods for their business to sell on

The tax year is from 6 April to 5 April the following year.

If they later sell the asset

Your spouse or civil partner may have to pay tax on any gain if they later dispose of the asset.

Their gain will be calculated on the difference in value between when you first owned the asset and when they disposed of it.

If this was before April 1982, your spouse or civil partner should work out their gain using the market value on 31 March 1982 instead.

They should keep a record of what you paid for the asset.

Gifts to charity

You do not have to pay Capital Gains Tax on assets you give away to charity.

You may have to pay if you sell an asset to charity for both:

more than you paid for it

less than market value

Work out your gain using the amount the charity actually pays you, rather than the value of the asset.

Work out if you need to pay

You need to pay Capital Gains Tax when you sell an asset if your total taxable gains are above your annual Capital Gains Tax allowance.

Work out your total taxable gains

Work out the gain for each asset (or your share of an asset if it’s jointly owned). Do this for the personal possessions, shares, property or business assets you’ve disposed of in the tax year.

Add together the gains from each asset.

Deduct any allowable losses.

The tax year runs from 6 April to 5 April the following year.

You’ll need to report and pay Capital Gains Tax if your taxable gains are above your allowance.

If your total gains are less than the tax-free allowance

You do not have to pay tax if your total taxable gains are under your Capital Gains Tax allowance.

You still need to report your gains in your tax return if both of the following apply:

the total amount you sold the assets for was more than 4 times your allowance

you’re registered for Self Assessment

There are different rules for reporting a loss.

If you’re non-resident

You need to tell HMRC when you sell property or land even if your gain is below the tax-free allowance or you make a loss. Non-residents do not pay tax on other capital gains.

Report and pay Capital Gains Tax

How and when you report Capital Gains Tax over your annual allowance depends on what you made the gain on.

There are different ways to report and pay Capital Gains Tax due on:

UK residential property sold since 6 April 2020

any other gains

To report any capital gains you’ll need:

calculations for each capital gain or loss you report

details of how much you bought and sold the asset for

the dates when you took ownership and disposed of the asset

any other relevant details, such as the costs of disposing of the asset and any tax reliefs you’re entitled to

If you sold property in the UK on or after 6 April 2020

You must report and pay any tax due on UK residential property using a Capital Gains Tax on UK property account within 30 days of selling it.

You may have to pay interest and a penalty if you do not report gains on UK property within 30 days of selling it.

Sign in or create a Capital Gains Tax on UK property account.

You’ll need a Government Gateway user ID and password to set your account up or sign in. If you do not have a user ID, you can create one the first time you sign in.

Once you have an account you can sign in at any time to report Capital Gains Tax on UK property or see any returns you’ve already sent.

If you’re not resident in the UK

You must report sales of UK property as a non-resident within 30 days, even if you have no tax to pay.

If you’re reporting on behalf of someone else or a trust

You need to use your own Capital Gains Tax on UK property account to report on behalf of someone else.

You’ll need proof you’re allowed to report on their behalf, such as a lasting power of attorney. If the person has died, you’ll need to give their date of death.

If you’re reporting as a trustee of a registered trust, you’ll need the trust’s registration number or unique tax reference.

There’s a different way to report your client’s Capital Gains Tax on UK property as an agent.

If you have other capital gains to report

If your gain is not from residential property sold in the UK since 6 April 2020, you have a choice of how and when to report the tax.

Report and pay the tax straightaway

You can use the ‘real time’ Capital Gains Tax service immediately if you know what you owe.

You need to report your gain by 31 December in the tax year after you made the gain. For example, if you made a gain in the 2020 to 2021 tax year, you need to report it by 31 December 2021.

You’ll need a Government Gateway user ID and password. If you do not have a user ID, you can create one when you report and pay.

After you’ve reported your gains, HMRC will send you a letter or email giving you a payment reference number and telling you how to pay.

If you need to change your report using the service, you’ll need your report reference number starting with ‘RTT’. You’ll get it by email within 10 days.

Report your gains in a Self Assessment tax return in the following tax year

You can report your gains in a Self Assessment tax return in the tax year after you disposed of assets.

Do not wait until the next tax year to report gains on UK residential property sold since 6 April 2020. You may have to pay interest and a penalty if you do.

If you do not usually send a tax return, register for Self Assessment after the tax year you disposed of your chargeable assets.

You can get help with your tax return from an accountant or tax adviser.

After you’ve sent your return HMRC will tell you how much you owe in Capital Gains Tax, how to pay and when to pay by.

Capital Gains Tax rates

You pay a different rate of tax on gains from residential property than you do on other assets.

You do not usually pay tax when you sell your home.

If you pay higher rate Income Tax

If you’re a higher or additional rate taxpayer you’ll pay:

28% on your gains from residential property

20% on your gains from other chargeable assets

If you pay basic rate Income Tax

If you’re a basic rate taxpayer, the rate you pay depends on the size of your gain, your taxable income and whether your gain is from residential property or other assets.

Work out how much taxable income you have - this is your income minus your Personal Allowance and any other Income Tax reliefs you’re entitled to.

Work out your total taxable gains.

Deduct your tax-free allowance from your total taxable gains.

Add this amount to your taxable income.

If this amount is within the basic Income Tax band you’ll pay 10% on your gains (or 18% on residential property). You’ll pay 20% (or 28% on residential property) on any amount above the basic tax rate.

If you have gains from both residential property and other assets

You can use your tax-free allowance against the gains that would be charged at the highest rates (for example where you would pay 28% tax).

If you’re a trustee or business

Trustees or personal representatives of someone who’s died pay:

28% on residential property

20% on other chargeable assets

You’ll pay 10% if you’re a sole trader or partnership and your gains qualify for Business Asset Disposal Relief.

If you make a loss

You can report losses on a chargeable asset to HM Revenue and Customs (HMRC) to reduce your total taxable gains.

Losses used in this way are called ‘allowable losses’.

Using losses to reduce your gain

When you report a loss, the amount is deducted from the gains you made in the same tax year.

If your total taxable gain is still above the tax-free allowance, you can deduct unused losses from previous tax years. If they reduce your gain to the tax-free allowance, you can carry forward the remaining losses to a future tax year.

Reporting losses

Claim for your loss by including it on your tax return. If you’ve never made a gain and are not registered for Self Assessment, you can write to HMRC instead.

You do not have to report losses straight away - you can claim up to 4 years after the end of the tax year that you disposed of the asset.

There’s an exception for losses made before 5 April 1996, which you can still claim for. You must deduct these after any more recent losses.

Losses when disposing of assets to family and others

Your husband, wife or civil partner

You usually do not pay Capital Gains Tax on assets you give or sell to your spouse or civil partner. You cannot claim losses against these assets.

Other family members and ‘connected people’

You cannot deduct a loss from giving, selling or disposing of an asset to a family member unless you’re offsetting a gain from the same person.

This also applies to ‘connected people’ like business partners.

Connected people

HMRC defines connected people as including:

your brothers, sisters, parents, grandparents, children and grandchildren, and their husbands, wives or civil partners

the brothers, sisters, parents, grandparents, children and grandchildren of your husband, wife or civil partner - and their husbands, wives or civil partners

business partners

a company you control

trustees where you’re the ‘settlor’ (or someone connected to you is)

Claiming for an asset that’s lost its value

You can claim losses on assets that you still own if they become worthless or of ‘negligible value’.

HMRC has guidance on how to make a negligible value claim.

Special rules

HMRC has guidance on the special rules for losses:

when someone dies

if you’re non-resident and sell UK property or land

if you’ve temporarily lived abroad as a ‘non-resident’

from your income on shares that are unquoted or in the Enterprise Investment Scheme

on overseas assets if you’re ‘non-domiciled’ in the UK and have claimed the ‘remittance basis’

Record keeping

You need to collect records to work out your gains and fill in your tax return. You must keep them for at least a year after the Self Assessment deadline.

You’ll need to keep records for longer if you sent your tax return late or HM Revenue and Customs (HMRC) have started a check into your return.

Businesses must keep records for 5 years after the deadline.

Records you’ll need

Keep receipts, bills and invoices that show the date and the amount:

you paid for an asset

of any additional costs like fees for professional advice, Stamp Duty, improvement costs, or to establish the market value

you received for the asset - including things like payments you get later in instalments, or compensation if the asset was damaged

Also keep any contracts for buying and selling the asset (for example from solicitors or stockbrokers) and copies of any valuations.

If you do not have records

You must try to recreate your records if you cannot replace them after they’ve been lost, stolen or destroyed.

If you fill in your tax return using recreated records, you’ll need to show where figures are:

estimated - that you want HMRC to accept as final

provisional - that you’ll update later with the actual figures

Market value

Your gain is usually the difference between what you paid for your asset and what you sold it for.

There are some situations where you use the market value instead.

Situation | Use market value at

Gifts | Date of gift

Assets sold for less than they were worth to help the buyer | Date of sale

Inherited assets where you do not know the Inheritance Tax value | Date of death

Assets owned before April 1982 | 31 March 1982

Checking the market value

HM Revenue and Customs (HMRC) can check your valuation.

After you’ve disposed of the asset, complete a ‘Post-transaction valuation check’ form. Return it to the address on the form - allow at least 3 months for HMRC’s response.


What you pay it on

You may have to pay Capital Gains Tax if you make a profit (‘gain’) when you sell (or ‘dispose of’) a personal possession for £6,000 or more.

Possessions you may need to pay tax on include:

jewellery

paintings

antiques

coins and stamps

sets of things, eg matching vases or chessmen

You’ll need to work out your gain to find out whether you need to pay tax.

When you don’t pay it

You don’t usually need to pay tax on gifts to your husband, wife, civil partner or a charity.

You don’t pay Capital Gains Tax on:

your car - unless you’ve used it for business

anything with a limited lifespan, eg clocks - unless used for business

Jointly owned possessions

You’re exempt from paying tax on the first £6,000 of your share if you own a possession with other people.

Work out your gain

Your gain is usually the difference between what you paid for your personal possession and what you sold it for.

Use the market value instead if:

it was a gift (there are different rules if it was to your spouse, civil partner or a charity)

you sold it for less than it was worth to help the buyer

you inherited it (and don’t know the Inheritance Tax value)

you owned it before April 1982

Deduct costs

You can deduct certain costs of buying, selling or improving your personal possession from your gain.

Costs you can deduct include:

fees, eg for valuing or advertising

costs to improve your possession (but not repairs)

VAT (unless you can reclaim it)

You can’t deduct certain costs, including:

interest on a loan to buy your possession

costs you can claim as expenses, if you’ve used your possession for business

Contact HM Revenue and Customs (HMRC) if you’re not sure whether you can deduct a certain cost.

If you sold it for between £6,000 and £15,000

You may be able to reduce your gain if you got between £6,000 and £15,000 for your possession when you sold or disposed of it.

Subtract £6,000 from the amount you’ve received.

Multiply this by 1.667.

Compare this with the actual gain - use the lower amount as your capital gain.

Work out if you need to pay

When you know your gain, you can work out if you need to report and pay Capital Gains Tax.

If you’ve used your possession for business, you can reduce or delay the tax you pay if you’re eligible for tax relief.

Reporting a loss

The rules are different if you need to report a loss.

You can claim losses for possessions sold for less than £6,000.  Work out your loss by using £6,000 as the amount you sold your possession for, and report it in your tax return.

Possessions with a limited lifespan

You don’t have to pay Capital Gains Tax on personal possessions with a lifespan of less than 50 years. This covers all machinery, and includes things like antique clocks or watches.

Different rules apply if you’ve used the possession for business. You don’t have to pay Capital Gains Tax if it doesn’t qualify for capital allowances. If it qualifies, you may need to pay Capital Gains Tax, but you can’t claim losses.

Possessions that are part of a set

If you sell all or part of a set to the same person for less than £6,000, you won’t pay tax.

If you sell parts of a set to different people, you won’t pay tax on each part sold for less than £6,000.

Sets include things like chessmen, books by the same author, matching vases and sets of china.


Pay your Self Assessment tax bill

Overview

The deadlines for paying your tax bill are usually:

31 January - for any tax you owe for the previous tax year (known as a balancing payment) and your first payment on account

31 July for your second payment on account

If you delayed making a payment on account in July 2020 because of coronavirus (COVID-19), this will be added to your tax bill due by 31 January 2021.

Pay Self Assessment now

You can pay in regular monthly instalments, if you prefer.

You can get help if you cannot pay your tax bill on time.

This guide is also available in Welsh (Cymraeg).

Ways to pay

Make sure you pay HM Revenue and Customs (HMRC) by the deadline. You’ll be charged interest and may have to pay a penalty if your payment is late.

The time you need to allow depends on how you pay.

You can no longer pay at the Post Office.

Same or next day

through your online bank account

online or telephone banking (Faster Payments)

CHAPS

by debit or corporate credit card online

at your bank or building society

You need a paying-in slip from HMRC to pay at a bank or building society.

3 working days

Bacs

Direct Debit (if you’ve set one up with HMRC before)

by cheque through the post

5 working days

Direct Debit (if you have not set one up with HMRC before)

If the deadline falls on a weekend or bank holiday, make sure your payment reaches HMRC on the last working day before (unless you’re paying by Faster Payments or by debit or credit card).

Problems with payment services

Online payment services may be slow during busy times. Check if there are any current problems or times they are not available.

Direct Debit

Set up a Direct Debit through your HM Revenue and Customs (HMRC) online account to make single payments for 31 January.

You can also set up another Direct Debit if you need to make a payment on account.

You’ll need to set up single payments each time you want to pay by Direct Debit.

Reference number

You’ll need to use your 11-character payment reference. This is your 10-digit Unique Taxpayer Reference (UTR) followed by the letter ‘K’.

You’ll find it either on your:

HMRC online account

paying-in slip, if you get paper statements

Your payment may be delayed if you use the wrong reference number.

Allow 5 working days to process a Direct Debit the first time you set one up. It should take 3 working days the next time if you’re using the same bank details.

If you’re unable to pay your Self-Assessment tax bill in full by card, you should use another payment method like a bank transfer.

Make an online or telephone bank transfer

You can pay your Self Assessment bill using Faster Payments, CHAPS or Bacs.

Pay by Faster Payments, CHAPS or Bacs

Your bill will tell you which account to pay in to. If you do not have a bill, or you’re not sure, use HMRC Cumbernauld.

Account details to use

Sort code | Account number | Account name

08 32 10 | 12001039 | HMRC Cumbernauld

08 32 10 | 12001020 | HMRC Shipley

If your account is overseas

Bank identifier code (BIC) | Account number (IBAN) | Account name

BARCGB22 | GB62BARC20114770297690 | HMRC Cumbernauld

BARCGB22 | GB03BARC20114783977692 | HMRC Shipley

What you’ll need

You’ll need to use your 11-character payment reference when you pay. This is your 10-digit Unique Taxpayer Reference (UTR) followed by the letter ‘K’.

You can find it on your:

HMRC online account

How long it takes

Payments by Faster Payments (online or telephone banking) usually reach HM Revenue and Customs (HMRC) on the same or next day, including weekends and bank holidays.

CHAPS payments usually reach HMRC the same working day if you pay within your bank’s processing times.

Bacs payments usually take 3 working days.

Payments from overseas may take longer - check with your bank.

Multiple payments by CHAPS

Send an online CHAPS enquiry form if you want to make a single CHAPS payment for multiple Self Assessment bills, using more than one payment reference number.

HMRC’s banking address is:

Approve a payment through your online bank account

You can pay your Self Assessment bill directly using your online or mobile bank account.

When you’re ready to pay, select ‘start a payment’ and then ‘pay by bank account’. You’ll then be directed to sign in to your online or mobile banking account to approve your Self Assessment payment.

The payment is usually instant but sometimes it takes up to 2 hours to show in your account.

You’ll need to have your online banking details ready to pay this way.

By debit or corporate credit card online

You can pay online.

There’s a fee if you pay by corporate credit card or corporate debit card. The fee is not refundable.

There’s no fee if you pay by personal debit card.

You cannot pay by personal credit card.

Use your 11-character payment reference when you pay. This is your 10-digit Unique Taxpayer Reference (UTR) followed by the letter ‘K’. You’ll find it either:

in your HMRC online account

on your paying-in slip, if you get paper statements

HMRC will accept your payment on the date you make it, not the date it reaches their account - including on bank holidays and weekends.

If you’re unable to pay your Self Assessment tax bill in full by card, you should use another payment method like a bank transfer.

At your bank or building society

You can only pay at your branch by cash or cheque if you both:

still get paper statements from HM Revenue and Customs (HMRC)

have the paying-in slip HMRC sent you

Make your cheque payable to ‘HM Revenue and Customs only’.

Write your 11-character payment reference on the back of the cheque. This is your 10-digit Unique Taxpayer Reference (UTR) followed by the letter ‘K’. You’ll find the reference number on the paying-in slip.

HMRC will accept your payment on the date you make it, and not the date it reaches their account (as long as you pay from Monday to Friday).

If you do not have a paying-in slip

You’ll need to pay by another method instead, for example:

debit or corporate credit card online

online or telephone banking

Direct Debit

By cheque through the post

You can send a cheque by post to HM Revenue and Customs (HMRC).

You do not need to include a street name, city name or PO box with this address.

Allow 3 working days for your payment to reach HMRC.

What to include

Write your 11-character payment reference on the back of the cheque. This is your 10-digit Unique Taxpayer Reference (UTR) followed by the letter ‘K’. You’ll find this on your payslip.

Include the payslip HMRC sent you (if you still get paper statements). Do not fold the payslip or cheque or fasten them together.

Your payment may be delayed if you do not fill in your cheque correctly.

If you do not have an HMRC payslip

You can print a slip to use to pay by post. You cannot use this at a bank.

Pay in instalments

If you’ve already filed your Self Assessment tax return, you might be able to pay the bill in instalments.

What you need to do depends on whether you want to:

make payments against your latest bill

make advance payments against your next bill

If you cannot afford to pay your latest bill

You can set up a payment plan to spread the cost of your latest Self Assessment bill if all the following apply:

you owe £30,000 or less

you do not have any other payment plans or debts with HMRC

your tax returns are up to date

it’s less than 60 days after the payment deadline

You can choose how much to pay straight away and how much you want to pay each month. You’ll have to pay interest.

If you don’t keep up with your repayments, HM Revenue and Customs (HMRC) can ask you to pay everything you owe.

There are 2 ways you can set up a payment plan:

set up a payment plan online

call the Payment Support Service

If you want to make regular payments in advance

You can set up a budget payment plan if you want to put aside money to cover your next Self Assessment tax bill.

This is different from payments on account, which you normally make once every 6 months towards your next tax bill.

The budget payment plan lets you:

decide how much to pay each week or month

stop paying for up to 6 months

You must be up to date with your previous Self Assessment payments.

Set up your plan using your HM Revenue and Customs (HMRC) online account. Go to the Direct Debit section and choose the budget payment option when filling in the Direct Debit form.

If the amount in your budget payment plan does not cover your next bill in full, you’ll need to pay the difference by the payment deadlines.

Through your tax code

You can pay your Self Assessment bill through your PAYE tax code as long as all these apply:

you owe less than £3,000 on your tax bill

you already pay tax through PAYE, for example you’re an employee or you get a company pension

you submitted your paper tax return by 31 October or your online tax return online by 30 December

How it’s set up

HM Revenue and Customs (HMRC) will automatically collect what you owe through your tax code if you meet all 3 conditions, unless you’ve specifically asked them not to (on your tax return).

If you’re not eligible, you will not be able to pay this way.

When you cannot pay through your tax code

You will not be able to pay your tax bill through your PAYE tax code if:

you do not have enough PAYE income for HMRC to collect it

you’d pay more than 50% of your PAYE income in tax

you’d end up paying more than twice as much tax as you normally do

If you’re self-employed you cannot pay Class 2 National Insurance through your tax code, unless it’s been due since before 6 April 2015. You must use one of the other ways to pay by the deadline instead.

How deductions are made

The tax you owe will be taken from your salary or pension in equal instalments over 12 months, along with your usual tax deductions.

Check your payment has been received

View your HM Revenue and Customs online account to check if your payment’s been received - it should show as paid between 3 to 6 working days later.

If paying by post, you can include a letter with your payment to ask for a receipt from HMRC.


Tax when you sell shares

What you pay it on

You may have to pay Capital Gains Tax if you make a profit (‘gain’) when you sell (or ‘dispose of’) shares or other investments.

Shares and investments you may need to pay tax on include:

shares that are not in an ISA or PEP

units in a unit trust

certain bonds (not including Premium Bonds and Qualifying Corporate Bonds)

You’ll need to work out your gain to find out whether you need to pay tax. This will depend on if your total gains are above your Capital Gains Tax allowance for the tax year.

When you do not pay it

You do not usually need to pay tax if you give shares as a gift to your husband, wife, civil partner or a charity.

You also do not pay Capital Gains Tax when you dispose of:

shares you’ve put into an ISA or PEP

shares in employer Share Incentive Plans (SIPs)

UK government gilts (including Premium Bonds)

Qualifying Corporate Bonds

employee shareholder shares - depending on when you got them

Work out your gain

You’ll need to work out your gain to find out whether you need to pay Capital Gains Tax.

Your gain is usually the difference between what you paid for your shares and what you sold them for.

Market value

In some situations you should use the market value of the shares when working out your gain. Do this if:

you gave them away as a gift to someone other than your spouse, civil partner or a charity

you sold them for less than they were worth

you inherited them and do not know the Inheritance Tax value

you owned them before April 1982

you acquired them through certain Employee Share Schemes

If the shares were given or sold to you by someone who claimed Gift Hold-Over Relief, use the amount that person paid for them to work out your gain. If you paid less than they were worth, use the amount you paid for them.

Selling in special circumstances

There are special rules for working out the cost of your shares if you sell:

shares you bought at different times and prices in one company

shares through an investment club

shares after a company merger or takeover

employee share scheme shares

Jointly owned shares and investments

If you sell shares or investments that you own jointly with other people, work out the gain for the portion that you own, instead of the whole value. There are different rules for investment clubs.

What to do next

Deduct costs

You can deduct certain costs of buying or selling your shares from your gain. These include:

fees, for example stockbrokers’ fees

Stamp Duty Reserve Tax (SDRT) when you bought the shares

Contact HM Revenue and Customs (HMRC) if you’re not sure whether you can deduct a certain cost.

Apply reliefs

You may be able to reduce or delay paying Capital Gains Tax if you’re eligible for tax relief.

Work out if you need to pay

When you know your gain you need to work out if you need to report and pay Capital Gains Tax.

You may be able to work out how much tax to pay on your shares.

You can use the calculator if you sold shares that were:

the same type, acquired in the same company on the same date

sold at the same time

You can not use the calculator if you:

sold other shares in the tax year

sold other chargeable assets in the tax year, such as a property you let out

claim any reliefs

are a company, agent, trustee or personal representative

Calculate Capital Gains Tax

Reporting a loss

The rules are different if you need to report a loss.

You can claim losses on shares you own if they become worthless or of ‘negligible value’ (for example because the company goes into liquidation).

HMRC has guidance on making a negligible value claim.

Selling shares in the same company

There’s a different way of working out your cost if you’ve sold the same type of shares in a company that you bought at different times.

You’ll usually need to work out the average cost of your shares and deduct this from what you got for them to work out your gain.

If you bought new shares of the same type in the same company within 30 days of selling your old ones, there are special rules for working out the cost to use in your tax calculations.

Contact HM Revenue and Customs (HMRC) or get professional tax help if you need advice.

Investment clubs

You work out your gain differently if you’ve bought and sold shares through an investment club.

An investment club is a group of people that buys and sells shares together on the stock market.

Work out your gain

You’ll get a written statement of your gains and losses (an ‘investment club certificate (PDF, 212KB)’) at the end of each tax year from the person who runs the club, for example its treasurer.

When you know your gain, work out if you need to report and pay Capital Gains Tax. There are special rules if you make any losses.

Leaving an investment club

The club buys back your shares if you leave, and you need to include any gain or loss when you’re working out if you need to pay tax.

Take your share of any gains during your membership of the club, and deduct your share of any losses.

Add any income from dividends you received (after tax).

Add any other money you received from the club, and deduct anything you paid into it (for example a monthly amount to invest).

Deduct the total from what you received from the club for your shares.

Contact HM Revenue and Customs (HMRC) or get professional help (for example from an accountant) if you need advice.

Transferring shares into the club

If you transfer shares you already own into the club, you’re treated as selling them and you need to work out your gain.

If you run an investment club

The investment club treasurer or secretary should:

divide any income, gains and losses between its members according to the club’s rules

give every member a written statement at the end of each tax year - you can use HMRC’s investment club certificate (PDF, 212KB)

keep records including members’ income and gains

arrange to buy shares from members who want to leave the club

If you’re starting a new investment club, make sure it has a constitution and rules. Get legal advice from a professional if you need help.

Tax relief

You may be able to reduce or delay the amount of Capital Gains Tax you have to pay if you’re eligible for tax relief.

Relief | Description

Entrepreneurs’ Relief | Pay 10% Capital Gains Tax instead of the normal rates if you sell shares in a trading company that you work for and have at least 5% of the shares and voting rights (known as a ‘personal company’).

Gift Hold-Over Relief | Pay no Capital Gains Tax if you give away shares in a personal company or unlisted company - the person you gave them to pays tax when they sell them.

Enterprise Investment Scheme (EIS) | Delay or reduce your Capital Gains Tax if you use a gain to buy unlisted shares in companies approved for EIS.

Seed Enterprise Investment Scheme (SEIS) | Pay no Capital Gains Tax on a gain of up to £100,000 if you use a gain to buy new shares in small early-stage companies approved for SEIS.

Rollover relief | Delay paying Capital Gains Tax if you sell unlisted shares to the trustees of a Share Incentive Plan (SIP) and use the proceeds to buy new assets.

Shares are ‘unlisted’ if they’re in a company that is not listed on the London Stock Exchange or a recognised stock exchange abroad.


Tax when you sell your home

Private Residence Relief

You do not pay Capital Gains Tax when you sell (or ‘dispose of’) your home if all of the following apply:

you have one home and you’ve lived in it as your main home for all the time you’ve owned it

you have not let part of it out - this does not include having a lodger

you have not used a part of your home exclusively for business purposes (using a room as a temporary or occasional office does not count as exclusive business use)

the grounds, including all buildings, are less than 5,000 square metres (just over an acre) in total

you did not buy it just to make a gain

If all these apply you will automatically get a tax relief called Private Residence Relief and will have no tax to pay. If any of them apply, you may have some tax to pay.

Find out if you’re eligible for Private Residence Relief.

Married couples and civil partners can only count one property as their main home at any one time.

The rules are different if you sell property that’s not your home or if you live abroad.

Work out your gain

You may need to pay tax when you sell your home if you do not qualify for full Private Residence Relief.

If you have tax to pay you need to work out how much gain you made when you sold your home.

Your gain is usually the difference between what you paid for your home and what you sold it for. Use the market value instead if:

it was a gift (there are different rules if it was to your spouse, civil partner or a charity)

you sold it for less than it was worth to help the buyer

you inherited the asset (and do not know the Inheritance Tax value)

you owned it before April 1982

If you’re not resident in the UK for tax, you only pay tax on gains since 5 April 2015.

Deducting costs

You can deduct costs of buying, selling or improving your property from your gain. These include:

estate agents’ and solicitors’ fees

costs of improvement works, for example for an extension - normal maintenance costs like decorating do not count

You cannot deduct certain costs, like interest on a loan to buy your property. Contact HM Revenue and Customs (HMRC) if you’re not sure whether you can deduct a certain cost.

There are special rules for calculating your gain if you sell a lease or your home is compulsorily purchased.

Work out if you need to pay

Once you know your gain and have worked out how much tax relief you get, you can calculate if you need to report and pay Capital Gains Tax.

You cannot use the calculator if you:

sold other chargeable assets in the tax year, for example shares

reduced your share of a property that you still jointly own

claim any reliefs other than Private Residence Relief or Letting Relief

are a company, agent, trustee or personal representative

Calculate Capital Gains Tax

If you have Capital Gains Tax to pay

You must report and pay any Capital Gains Tax on most sales of UK property within 30 days.

Living away from your home

You may get less Private Residence Relief if you live away from your home. However, you always get relief for certain periods.

The rules are different if you’re not UK resident for tax.

Periods that always qualify for relief

No matter how many homes you own or where you lived at the time, you always get relief for the last 9 months before you sold your home.

It must have been your only or main residence at some point while you owned it.

You’ll also get relief for up to the first 2 years that you owned the home if both the following apply:

it was being built, renovated or you could not sell your old home

you lived in it as your only or main residence within 2 years of owning it

You get relief for these periods even if you nominated a different home as your main home.

If you have one home or you nominated your home

You get relief if you were away from it for:

any reason for periods adding up to 3 years

up to 4 years if you had to live away from home in the UK for work

any period if you were working outside the UK

You must have lived in the home before and afterwards, unless your work prevented you.

If you only own one home you get relief for the last 36 months before you sold your home if any of the following apply:

you’re disabled

you’re in long-term residential care

you sold the property before 6 April 2014

You get relief for the last 18 months if none of these apply, but you sold your home before 6 April 2020.

If you own more than one home

In most cases, you only get relief for one home for any period. You must work out when you lived in each property as your main home.

If you’re married or in a civil partnership only one home per couple counts as your main home for any period.

If you’ve nominated a home you cannot get relief for another property for the time your home is nominated, apart from for the periods that always qualify for relief.

There are other rules that affect tax relief when you sell your home.

If you’re not sure how the rules apply to you, call the Capital Gains Tax helpline.

Nominating a home

If you nominate a property as your main home you qualify for relief for most of the time you live away. You must have lived in the home as your only or main residence at some point while you owned it.

You cannot get relief for another property for the time your home is nominated, apart from for certain periods that always qualify for relief.

You can nominate one property as your main home by writing to HM Revenue and Customs (HMRC). Include the address of the home you want to nominate. All the owners of the property must sign the letter.

If you want to nominate a home you must do this within 2 years every time your combination of homes changes.

If you do not nominate a home and you sell one of your properties you must work out how long you lived in it as your main home.

Overseas properties

From 6 April 2015, you can only nominate an overseas property if you lived in it for at least 90 days in the tax year.

If you let out your home

You may have to pay Capital Gains Tax if you’ve let out your home. How much you pay depends on how long you lived in it.

Having a lodger does not count as letting out your home.

Work out how much tax you have to pay

You’ll pay tax on your ‘chargeable gain’. This is your gain minus any Private Residence Relief you’re eligible for.

You get full relief for:

the years you lived in the home

the last 9 months you owned the home - even if you were not living there at the time

If you sold the property between 6 April 2014 and 6 April 2020, you get relief for the last 18 months you owned it.

If you only own one home and you’re disabled, in long-term residential care or sold the property before 6 April 2014 you get full relief for the last 36 months you owned it.

If you only let out part of your home

You’ll need to work out what proportion of your home you lived in. You only get Private Residence Relief on this proportion of your gain.

Claim Letting Relief

If you lived in your home at the same time as your tenants, you may qualify for Letting Relief on gains you make when you sell the property.

You can get the lowest of the following:

the same amount you got in Private Residence Relief

the same amount as the chargeable gain you made while letting out part of your home

Letting Relief does not cover any proportion of the chargeable gain you make while your home is empty.

There are other rules that may affect the amount of Capital Gains Tax you need to pay.