Do you pay tax on equity release?

Do I Pay Tax on Equity Release? Whether you’re a business owner, sole trader, or self-employed, you’ll want to know if you pay tax on equity release.

When you release the equity in an asset, such as your home, you can access cash from its value in small bursts or on a regular basis.

Because it is a loan, like a mortgage, equity release is tax-free. You will not be subject to Income Tax or Capital Gains Tax if you use equity release to supplement your income.

A lifetime mortgage is by far the most popular form of equity release, accounting for over 99 percent of all applications, and is the subject of this article.