Selling second-hand: do I need to pay tax?
If you declutter and sell second-hand, do you need to pay tax on the money you make?
- (opens in new tab)
- (opens in new tab)
- (opens in new tab)
- Look After My Bills Newsletter Newsletter

Making extra cash selling second-hand can provide a much-needed income boost but is the taxman due a cut of the money you make?
Selling on eBay or Vinted are both easy ways to get started selling second-hand.
Depending on which site you use - you can sell anything from clothes to books and even larger items like furniture online.
And there are plenty of other sites you can use including Facebook Marketplace and Gumtree.
If you’re happy to get up early at weekends – you can always go along and pay for a pitch at your local car boot sale.
Alice Haine, personal finance analyst at Bestinvest (opens in new tab) said: “Households can make small sums of money from the clutter in their home and it is far more sustainable to give unwanted items a new life elsewhere than just dump them in the tip”.
Do I need to pay income tax when selling second-hand?
This can depend on whether you’re selling your personal belongings, or intentionally buying items with the aim of turning a profit.
A spokesperson for HM Revenue & Customs (HMRC) said: “If you are just selling unwanted items that have been lying around your home, it is unlikely you will have to pay tax”.
“In order to pay tax on the goods you sell, you either have to be trading or make a capital gain. If you are trading you will be self-employed.”
Sarah Hollowell, Tax & Trustee Services Director at Killik & Co (opens in new tab) said:
“There should be a distinction between someone who is selling stuff that’s been hoarded in the loft for many years and someone who might have built up a collection of valuable items they’ve held onto until their value increases - Lego is a very good example”.
Buying and selling second-hand for profit
If you are buying and selling with the aim of making a profit, say snapping up old furniture at boot fairs and revamping items to sell them on – this can be deemed as trade.
Sarah Hollowell says in this case, “you would need to register as self-employed with HMRC and pay income tax on profits you make”.
eBay itself recommend seeking, “professional advice about your tax obligations” if you sell on the site as a business.
What is the trading allowance?
Since 6 April 2017, individuals have been able to boost their income by earning an extra £1,000 a year tax-free.
This tax allowance is known as the Trading allowance (opens in new tab) and includes buying and selling online as well as money made from casual jobs like dog walking, babysitting, gardening or renting out your driveway.
You can earn £1,000 in each tax year this way. As a general rule, this means there is no need to tell HM Revenue & Customs (opens in new tab) or pay income tax on the money.
The trading allowance is in addition to your tax-free personal allowance. This is the amount you can earn before paying tax and is currently £12,570.
What should I do if I earn over the £1,000 trading allowance?
If your extra income is over £1,000 - you should contact HMRC to let them know as you may need to fill in a self-assessment tax return.
You may also need to pay tax on the extra income earned.
Capital gains tax when making big profits
It may seem unlikely that selling off unwanted items around the house could make you big money.
But, if you make a substantial profit when selling certain items - you could be liable for capital gains tax (opens in new tab).
Alice Haine said: “If you make a profit when you sell or dispose of a personal possession worth £6,000 or more, such as jewellery, antiques, paintings, coins or stamps – but not your car – then you do need to consider the tax implication of that sale”.
- How to sell on eBay: a seller’s guide to the online marketplace
- How to sell on Vinted
- eBay vs Vinted – which is better for selling your pre-loved items
- How to turn your unwanted clothes into cash
- How to make some extra cash? 14 clever ways to boost your bank balance
- How to turn unwanted Christmas gifts into cash
Sue Hayward is a personal finance and consumer journalist, broadcaster and author who regularly chats on TV and Radio on ways to get more power for your pound. Sue’s written for a wide range of publications including the Guardian, i Paper, Good Housekeeping, Lovemoney and My Weekly. Cats, cheese and travel are Sue’s passions away from her desk!
-
-
Seven ‘awful April’ price hikes – how to beat them and save money
A whole heap of price hikes are coming in this April – we run through the main ones along with ways to beat them and save money
By Sue Hayward • Published
-
State pension underpayment warning - have you been underpaid and eligible for more than £11,500?
Thousands of retirees, mainly women, are still owed money by the government after being underpaid their state pension. We explain what you need to know
By Katie Binns • Last updated
-
Seven ‘awful April’ price hikes – how to beat them and save money
A whole heap of price hikes are coming in this April – we run through the main ones along with ways to beat them and save money
By Sue Hayward • Published
-
Car tax to rise by 10.1% in April: what the increase means for you
Vehicle excise duty will be increasing from 1 April, meaning higher costs for many motorists. We reveal clever ways to save money on your car tax.
By John Fitzsimons • Published
-
Inflation rises to 10.4% as food prices surge: what does it mean for you?
As prices rise again, household finances are coming under a lot more pressure. We look at what’s increased and why, and how you can beat inflation
By Stephanie Baxter • Published
-
Selling VHS tapes: could your old videotape be worth over $25k?
Some VHS tapes can fetch a small fortune. If you’ve still got boxes of old 80s and 90s cassette tapes, it could be time to dust them off to try and make some cash. We explain what to check for and how to sell them
By Sue Hayward • Published
-
Tesco to slash triple Clubcard voucher exchange perk
Saving up and swapping your Tesco Clubcard vouchers to save money on treats like days out has always been a big part of the supermarket’s popular loyalty scheme.
By Sue Hayward • Published
-
Paying at the pump: why is my payment card pre-authorised for up to £120 when I fill up?
If you choose to ‘pay at the pump’ when filling up with fuel, your payment card could be pre-authorised for up to £120. We explain why this happens and what it means for motorists
By Sue Hayward • Published
-
TV Licence fee could see biggest rise in 20 years from 2024 – what are your options?
It’s time to ask whether you really need a TV Licence, as prices will rise in 2024 - we go through your options
By Vaishali Varu • Published
-
Alcohol duty freeze – what does it mean for the price of a pint?
Jeremy Hunt postpones the expected alcohol duty rise and cuts the price of draught beer – we have all the details
By Vaishali Varu • Published