Can HMRC Take My House For Personal Tax?

If you are wondering whether or not HMRC can take your house to recover your personal tax debt, you will find the answer to this question in the following blog post. In addition to exploring the various circumstances surrounding personal tax owed to HMRC and their consequences, we will also discuss potential alternatives to having your house taken by HMRC or sold in the local market to pay back personal tax dues.

Can HMRC Take My House For Personal Tax?

While HMRC will not take possession of your house if you have personal tax debt; however, they can recover the amount you owe them through the sale of your property, including a house. This is called a “Charging Order” which can be enforced by HMRC in case of the following situations:

  • you owe them a significant amount of tax
  • you have no other assets that HMRC can seize
  • you have refused a payment arrangement with them

However, while charging orders give HMRC the power to recover debts from the sale of a property, these are only enforced under the following conditions:

  • when the owner of the property sells it
  • through a court action of “order for sale”, which instructs the debtor to sell the property

Even then, HMRC will not use a charging order if a debtor has only one house which is their main residence. On the other hand, in case of either of the following circumstances, you can expect that HMRC will take the help of a charging order to recover your personal tax debt:

  • the debtor owns more than one property
  • they have been involved in criminal activity

In most cases, HMRC can ask debtors to release equity from their property to pay back their tax debt and clear any personal tax dues. 

Can I Work Out A Personal Tax Repayment To HMRC Without Selling My House?

Yes, you can work out a personal tax repayment to HMRC in case you owe them money and don’t to sell your house to settle your debt. In this case, HMRC will decide your ability to pay using an “income and expenditure assessment” form. 

To determine your disposable income, this form takes into account your income, disposable assets, and expenditures. 

The standard expectation from HMRC is that you should pay no more than 50% of your disposable income, although this may be higher for those with a very high disposable income. However, there is no maximum time limit for paying off your tax debt. 

That said, if you are struggling to make a tax payment, it is recommended that you contact HMRC to inquire about affordable monthly payment options.

Are There Any Other Options For Personal Tax Repayment Without Selling My House?

Yes, depending on your circumstances and the amount of personal tax debt that you owe to HMRC, you can consider other repayment options. 

One of the more debtor-friendly options, in this case, is the Time to Pay arrangement that you may be able to agree upon with the HMRC and be able to repay your tax debt without having to sell your house.

Based on your individual circumstances and ability to make payments without causing financial hardship, a payment plan will be offered to you.

Each Time to Pay arrangement is customized according to the debtor’s unique financial circumstances, so there is no one-size-fits-all approach. HMRC assesses your ability to pay and determines the appropriate timeframe for repayment. 

The arrangement is not rigid and can be modified as needed. If your income increases or you receive unexpected funds, you may be able to shorten the repayment period. Conversely, if your expenses rise or your earnings decrease, you may need to extend the repayment period.


The above discussion helps to conclude that while HMRC may not take your house against personal tax debt; however, your property can be sold under court orders in some cases of tax debt. However, there are many alternatives to such a situation such as working out repayment plans with the HMRC. it is advisable for taxpayers with dues to discuss their circumstances with HMRC and work out a mutually agreeable repayment plan.


What will happen if you do not pay your tax bill – GOV.UK

Can HMRC Take My House in a Joint Name? 2023 Rules

Dealing with income tax arrears – Citizens Advice