Won a House? Stamp Duty, Tax and What Happens Next

The immediate reality: conveyancing first

Between winning and receiving the keys, the legal process of transferring property title must complete. This is standard conveyancing — the operator instructs its solicitors to transfer title to you, and in most cases you instruct your own solicitor to act on your behalf. Whether the operator covers your conveyancing costs varies: Omaze’s own FAQ states it covers “the reasonable direct costs that the winner will incur in order to take ownership of the house (such as reasonable conveyancer fees)” (Omaze FAQ, as of July 2026). Other operators’ cover is generally more limited or unstated — check the specific competition’s own terms rather than assuming the same applies everywhere.

Conveyancing typically takes eight to twelve weeks for a straightforward transaction. Complications — leasehold issues, missing title documents, delayed Land Registry registration — can extend this significantly. You cannot move in or sell until the transfer completes, and during this period the property remains in the operator’s or previous owner’s name.

Stamp Duty Land Tax: the biggest cost, for most operators

SDLT is the most significant cost most winners would otherwise face, and the one that surprises people most. HMRC treats a competition prize property as an acquisition at market value — not at £0 — because a prize is not a bought transaction at an agreed price, and market value is used as the basis instead. Whether you personally have to pay this depends on the operator: Omaze pays the winner’s SDLT in full, “irrespective of the winner’s circumstances” (Omaze FAQ, as of July 2026); other operators may not.

Current SDLT rates for a single property in England (gov.uk, Stamp Duty Land Tax: residential property rates, as of July 2026):

Property value band	Standard rate	Additional-property rate (5 percentage points higher)
Up to £125,000	0%	5%
£125,001–£250,000	2%	7%
£250,001–£925,000	5%	10%
£925,001–£1.5 million	10%	15%
Over £1.5 million	12%	17%

Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT) instead of SDLT, with their own separate bands — check revenue.scot or gov.wales if the property you’ve won is in Scotland or Wales.

Worked example: a winner receives a house worth £700,000 in England.

• If it’s their only property: 0% on the first £125,000, 2% on the next £125,000 (£2,500), 5% on the remaining £450,000 (£22,500) — total SDLT of £25,000.
• If they already own another property, the 5-point surcharge applies to every band: £6,250 + £8,750 + £45,000 — total SDLT of £60,000.

Where an operator does not cover this, the liability falls due within 14 days of completion (gov.uk, Stamp Duty Land Tax returns, as of July 2026).

Is the prize treated as taxable income?

No. HMRC treats one-off prize and competition winnings — including property prizes — as windfall gains rather than income, so there is no Income Tax charge on receiving the prize itself (HMRC Business Income Manual, BIM100100 onwards). Gift Aid cannot be claimed on a competition entry fee, because buying entries is a purchase, not a donation.

What about Capital Gains Tax if you sell?

If you sell the property after winning it, Capital Gains Tax (CGT) may apply on any gain from the point of acquisition. For a prize, HMRC treats your acquisition cost as the market value on the date you received the property (HMRC Capital Gains Manual, CG12920 and CG16330).

If you sell immediately: your gain is small, since the sale price is close to the acquisition market value, so CGT is minimal. Selling costs — estate agent and legal fees — reduce your net proceeds regardless.

If you live there as your main residence and later sell: Private Residence Relief (PRR) covers the periods you lived there as your only or main home, with the final nine months of ownership always counting even if you’ve since moved out (HMRC helpsheet HS283, Private Residence Relief). If you lived there throughout your ownership, your CGT liability may be nil.

If you let it: rental income is taxable as income, separately from CGT. Since April 2020, Lettings Relief on any eventual CGT bill has only applied where you shared occupation of the property with a tenant — for example, a lodger arrangement — and is capped at £40,000 per person, or £80,000 for a couple (gov.uk, HS283, as of July 2026). If you sell UK residential property at a taxable gain as a UK resident, you must report and pay any CGT due to HMRC within 60 days of completion.

For complex situations — large estates, multiple properties, business use — speak to a STEP-qualified tax adviser or chartered accountant before making any decision.

Other costs to budget for

Cost	Who pays	Notes
Stamp Duty Land Tax	Varies by operator — Omaze covers this in full; check other operators’ terms	See table above for the scale involved
Conveyancing fees	Varies by operator — Omaze covers reasonable conveyancer’s fees; others may not	£1,000–£2,500 is a typical range where the winner pays
Survey (optional)	Winner, if one is wanted	£500–£1,500
Buildings and contents insurance	Winner, from the transfer date	Varies by property
Council tax	Winner, from the transfer date	Varies by local authority and band
Outstanding service charges (if leasehold)	Check the specific property’s title and the operator’s terms	Varies

Omaze also gives every Grand Prize winner a minimum of £250,000 in cash, intended to help cover several years of these running costs (Omaze FAQ, as of July 2026) — a provision that isn’t standard across every operator in this market.

Your options as a winner

Keep the property: move in and treat it as your main residence. Running costs and, where the operator doesn’t cover it, SDLT, are still due.

Sell the property: proceeds minus any SDLT you’re liable for, selling costs and legal fees. Often the cleanest option if you’d otherwise struggle to cover SDLT upfront.

Let the property: generates rental income but creates an Income Tax liability on that income, and an eventual CGT liability with only limited Lettings Relief available. Worth professional advice before committing.

Take a cash alternative, if one is offered: some draws offer a cash sum instead of the property; whether this is available, and at what value, depends entirely on the specific draw’s own terms. Cash alternatives are typically below the property’s full market value but avoid property-related costs entirely.

For more on how Omaze specifically handles the winner handover process, see our Omaze-specific guide to what happens when you win. For all active UK house draws, see the win-a-house page.