SideLedger › Guides › eBay personal items

Selling Personal Items on eBay: Do You Pay Tax? (UK)

Last checked against GOV.UK and eBay's help pages: 27 October 2026 · General information, not tax advice

Clearing out your own things usually isn't trading

GOV.UK describes personal possessions as things that belong to you for your own use, whether you bought them or were given them: clothing, ornaments, kitchen equipment, furniture, jewellery, computers and phones. It says "If you're selling personal possessions you probably do not have to pay Income Tax on these" (GOV.UK).

Its own example: you're clearing out your attic and sell unwanted items online, none worth more than £6,000. "It's unlikely that you'll need to tell us about this income or pay any tax, no matter how many items you sell." eBay quotes HMRC to the same effect (eBay: UK digital sales reporting).

When selling on eBay becomes trading

It changes when you sell things you bought intending to sell for a profit, or things you made. GOV.UK says you're probably trading then (GOV.UK). Its example: after selling unwanted clothes, you start regularly buying at car boot sales and charity shops to sell for more than you paid. That's income you may need to tell HMRC about.

If you're trading, the first £1,000 of gross income a tax year (6 April to 5 April), across all your side hustles, is covered by the trading allowance. Over that, you need to tell HMRC. HMRC weighs several factors, which it calls the "badges of trade": see our guide Am I trading?

Valuable items: the £6,000 Capital Gains Tax rule

Capital Gains Tax (CGT) is a tax on the profit when you sell something for more than you paid. GOV.UK says you may have to pay it if you make a profit (a "gain") when you sell a personal possession for £6,000 or more (GOV.UK: CGT on personal possessions). Examples it gives: jewellery, paintings, antiques, coins and stamps.

• Sets count together. The £6,000 applies to the total value of items that form a set, such as chess pieces, books by the same author, or matching vases (GOV.UK).
• Some things are exempt. GOV.UK says you don't pay CGT on your car (unless you used it for business) or on anything with a limited lifespan, like clocks (unless used for business).
• There's a yearly allowance. You only pay CGT on overall gains above your tax-free allowance, which is £3,000 (GOV.UK: CGT allowances).
• No profit, no gain. CGT is on the gain, so selling something for less than you paid for it doesn't create one.

GOV.UK's example: you bought a picture for £4,600 five years ago and sell it for £7,000. Because it sold for more than £6,000, you'd use HMRC's tool to check whether you need to tell HMRC. We don't work out CGT bills: use the HMRC checker or ask an adviser.

eBay may still report you

eBay's reporting rule doesn't care whether you're clearing out or trading. It reports UK sellers who, in a calendar year, reach £1,707 or more in sales after fees, or 30 or more sales (eBay). A busy clear-out can pass 30 sales easily. If that happens, eBay will ask for your National Insurance number: see why eBay is asking for your NI number, and our eBay threshold guide.

eBay says the reporting rules "do not change your existing tax obligations or create new tax obligations". If HMRC does write to you about your sales, our guide to HMRC letters about Vinted or eBay takes you through it step by step.

Selling both your own things and stock? Keep them separate

Lots of people start with a clear-out and then begin reselling. If you do both, only the reselling side counts as trading, so it helps to know which sale was which. Our free checker lets you say how much of your total came from things you bought or made to sell, and our Vinted tax guide explains the same rules for Vinted. The SideLedger app we're building will tag each sale as personal or stock for you: join the waitlist.

Budget 2026

We checked everything on this page on 27 October 2026. The Budget is on 28 October 2026, and HMRC says full details of its tax announcements will be published that day (GOV.UK: Budget 2026 tax documents). The £6,000 personal possessions rule, the £3,000 CGT allowance and the £1,000 trading allowance could all be affected by a Budget. We'll re-check this page after the Budget.

Quick answers

Do I pay tax on selling personal items on eBay in the UK?

Usually not. GOV.UK says that if you're selling personal possessions you probably do not have to pay Income Tax on them, and that clearing out unwanted items worth less than £6,000 each is unlikely to need telling HMRC, however many you sell.

When do I pay Capital Gains Tax on things I sell on eBay?

GOV.UK says you may have to pay Capital Gains Tax if you make a profit when you sell a personal possession for £6,000 or more. The £6,000 also applies to a set, like matching vases. You only pay on overall gains above the £3,000 tax-free allowance.

Will eBay report me to HMRC for selling my own things?

It can. eBay reports sellers who reach £1,707 in sales after fees or 30 sales in a calendar year, whatever they sell. Being reported doesn't mean you owe tax.

Not sure where you stand?

• Use HMRC's free tool: Check if you need to tell HMRC about additional income.
• Read GOV.UK's guide to telling HMRC about income from online platforms.
• Speak to an accountant or tax adviser. If you're on a low income, the charity TaxAid gives free tax help.

Sources

• GOV.UK: Check if you need to tell HMRC about income from online platforms
• GOV.UK: Capital Gains Tax on personal possessions and Capital Gains Tax allowances
• GOV.UK: Tax-free allowances on property and trading income
• eBay Help: UK digital sales reporting
• GOV.UK: Budget 2026 tax documents

More guides for UK online sellers

• Do You Pay Tax on Vinted? UK Rules & HMRC Limits 2026 – Own clothes vs reselling, the £1,000 allowance and the 30-sale reporting rule, in plain English.
• Vinted HMRC Form & NI Number Request: What to Do – Why Vinted is asking for your National Insurance number, the end-of-year deadline, and why it doesn't mean you owe tax.
• Vinted Tax Calculator UK: Free HMRC Limit Checker – Check your sales against the 30-sale / ~£1,700 reporting rule and the £1,000 allowance. It checks limits; it doesn't work out a tax bill.
• eBay HMRC Reporting Threshold 2026: £1,707 or 30 Sales – What eBay counts towards £1,707, what it reports, and why a report isn't a tax bill.
• Got an HMRC Letter About Vinted or eBay Sales? What to Do – A calm step-by-step: check it's genuine, work out if you were trading, and reply on time.
• Free Vinted & eBay Profit Tracker Spreadsheet (UK) – A free download with tax-year tabs, profit per item and a check against the HMRC limits.
• Trading Allowance vs Expenses: Which Should Resellers Use? – The £1,000 allowance or your real costs? Why resellers who track stock costs often come out ahead with expenses.
• Do Resellers Need to Register for Self Assessment? – When reselling counts as trading, the £1,000 rule, and the 5 October and 31 January deadlines.
• Depop HMRC Reporting: Do You Pay Tax on Depop Sales? – What Depop reports, what it asks you for, and Depop's own example of being reported but owing no tax.
• Etsy UK Tax: HMRC Reporting Rules for Sellers 2026 – When Etsy reports you to HMRC, and why things you make to sell usually count as trading.
• The £3,000 Side Hustle Threshold: Not in Force Yet – What was announced, what it would change, and why the £1,000 rule still applies today.
• Why Is eBay Asking for My National Insurance Number? – Why eBay wants your NI number, what happens if you don't give it, and why giving it doesn't mean you owe tax.
• Facebook Marketplace & HMRC: Do They Report You? – What we could and couldn't confirm about Facebook Marketplace reporting, what Gumtree says, and why the tax rules are the same either way.
• Am I Trading? HMRC's Badges of Trade for Resellers – HMRC's nine badges of trade with Vinted and eBay examples, plus car boot sales: when selling becomes trading.