Help on capital tax gains

malawihap

Hi
I could be selling my old house that i have rented for 5 years. The question is would i be liable for CTG and was asking on this forum hoping there is someone on here who is good at working out CTG.
So here are the details l brought the house on the 25th may 2001 for £33.350 and lived in the house until December 2014. After a messy divorce i decided to remortgage to raise funds to pay off ex wife and got a buy to let mortgage to keep hold of the house and rent it out.
I've been offered £190.000 .
So basically the profit is £156.650 , sadly the taxman wont take into account the £96.000 mortgage i still have on it
I spent £13.000 on improvements , i also spent £7000 on solar panels but not sure solar panels would count as a home improvement .
I lived in the house for 162 months plus another 18 months i can claim as i lived in the house so bringing the total months i can claim to 180 months
I rented it out for 60 months
Plus a CGT allowance of £12000

I tried to work it out and it looks like i dont have to pay anything but im not 100% sure , so was looking for a second option if there is anyone who could help .
Regards

00ec25

everyone always says they spent money on improvements, few people actually know what that means and whether those costs are capital costs - care to justify your 13k by setting out exactly what you spent it on?

solar panels are not a capital improvement.

as for the rest, see here for the calculation:
https://forums.moneysavingexpert.com/showpost.php?p=73621764&postcount=2

why do you think the taxman should take account of the size of your loan when working out how much profit you intend to keep for yourself? How you funded your purchase has no impact whatsoever on the profit you stand to make. Profit would be just the same if you had purchased for cash, rather than borrowed the money.

malawihap

Thanks for the reply, i know the loan does not make a difference but not to worry. The £13000 was for knocking through an old shed to extend the living room and rip out old kitchen for a new one. I still have the planning permission from the council for the building work to be carried out.