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Capital Gains Tax help please!
TheGreenMan
Posts: 28 Forumite
in Cutting tax
Hi
Could someone please help explain the CGT due on this?
Me & my girlfriend bought a flat together a couple of decades ago. For example's sake lets say at £200,000. Over the course of the last 20 years we've remortgaged and now owe £250,000 mortgage. We used the extra money to consolidate debt, make home improvements & put a deposit down on another property. If we sold the flat at £380,000 would we pay CGT on £130,000? And how much please?
Thanks in advance!!
P
Could someone please help explain the CGT due on this?
Me & my girlfriend bought a flat together a couple of decades ago. For example's sake lets say at £200,000. Over the course of the last 20 years we've remortgaged and now owe £250,000 mortgage. We used the extra money to consolidate debt, make home improvements & put a deposit down on another property. If we sold the flat at £380,000 would we pay CGT on £130,000? And how much please?
Thanks in advance!!
P
0
Comments
-
No CGT if you live there, but CGT would be payable if it's a buy to let - in the latter case, you may be able to deduct the cost of some improvements but essentially yes, the gain is the difference between purchase and sale price....
https://www.gov.uk/capital-gains-tax
https://www.gov.uk/tax-sell-property
1 -
Effectively it comes down to whether or not it was the main residence of both of you throughout. If so, no capital gains tax to pay on the gain of £180000 (not £130000). This would be reduced by the cost of any improvements and legal fees incurred at purchase and sale.TheGreenMan said:Hi
Could someone please help explain the CGT due on this?
Me & my girlfriend bought a flat together a couple of decades ago. For example's sake lets say at £200,000. Over the course of the last 20 years we've remortgaged and now owe £250,000 mortgage. We used the extra money to consolidate debt, make home improvements & put a deposit down on another property. If we sold the flat at £380,000 would we pay CGT on £130,000? And how much please?
Thanks in advance!!
PMortgage balance is irrelevant.1
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