Do I Pay Tax on Reselling in the UK? (2026 Guide)

This is general information, not tax advice. Tax rules change and depend on your circumstances. Check GOV.UK or speak to an accountant before making decisions.

Lots of people now sell on Vinted, eBay and Depop — some clearing out wardrobes, some running a serious side business. The tax position is very different for each, and the rules on platforms reporting sellers to HMRC have caused a lot of confusion. Here’s how it works.

Selling your own things vs trading

Selling your own unwanted possessions — clearing out clothes you’ve worn, an old console, things from the loft — is generally not trading. You usually won’t owe Income Tax on it, even if you sell a lot of items, because you’re typically selling for less than you paid.

Buying items in order to resell them for a profit is different. If you regularly buy things from charity shops, car boots or clearance sales intending to sell them for more, HMRC is likely to see that as trading, and the profit can be taxable.

HMRC looks at the whole picture when deciding whether something is trading. Signs that point towards trading include:

• buying items specifically to resell them
• doing it regularly or frequently
• making a profit on most items
• improving or repairing items to sell for more
• running it in an organised, business-like way

One profitable sale of something you happened to own isn’t trading. A weekly sourcing trip to buy stock for Vinted probably is.

The £1,000 trading allowance

You can have up to £1,000 a year of gross trading income (that’s your sales, before deducting costs) tax-free under the trading allowance. If your total trading income in a tax year is £1,000 or less, you generally don’t need to tell HMRC about it or pay tax on it.

If your trading income goes over £1,000:

• you’ll usually need to register for Self Assessment — normally by 5 October after the end of the tax year in which you started trading — and file a tax return;
• you can then choose to deduct either the £1,000 allowance or your actual allowable expenses (stock, postage, marketplace fees, packaging and so on) — whichever gives a lower profit.

The government has announced plans to raise the income threshold at which people need to report trading income through Self Assessment (to £3,000), with a simpler way to report smaller amounts. The £1,000 allowance itself isn’t changing. Check GOV.UK for when any change takes effect.

Marketplaces now report sellers to HMRC

Since 1 January 2024, online platforms such as Vinted, eBay and Depop have been required to collect information about sellers and report it to HMRC each year. Reporting applies to sellers who, in a calendar year, make 30 or more sales or earn about £1,700 (€2,000) or more.

This caused headlines about a “side hustle tax”, but it isn’t a new tax:

• Being reported doesn’t mean you owe tax. Someone clearing out their own wardrobe may be reported but owe nothing.
• If you’re trading and over the £1,000 allowance, you already needed to declare that income — the reporting just makes it easier for HMRC to spot people who don’t.

It does mean HMRC can see your selling activity, so it’s sensible to keep records either way.

What about Capital Gains Tax?

Selling personal possessions for more than you paid is uncommon, but it happens with collectables, designer items or rare vintage pieces. Personal possessions sold for £6,000 or less each are usually exempt from Capital Gains Tax. Above that, CGT may apply — check GOV.UK’s guidance on personal possessions.

Keep simple records

Even as a small side hustle, record:

• What you bought — date, where, item and price
• What it sold for — date, marketplace and sale price
• Fees charged by the marketplace
• Postage, packaging and other costs — mileage, cleaning, repairs
• Receipts where you have them

A spreadsheet is fine. Good records let you claim your real expenses if they’re more than £1,000, answer any HMRC questions, and see which items actually make you money. Our resale value calculator works out profit per item — note that it doesn’t include income tax.

Marketplace business seller rules

Separately from tax, some marketplaces have rules about when you must register as a business seller. On eBay UK, for example, business sellers pay different (higher) fees than private sellers. If you’re trading regularly, check each marketplace’s guidance — and compare the costs in our fees guide.

Quick summary

If you’re unsure which applies to you, GOV.UK’s guidance on selling online and the trading allowance is the place to start.