Capital Gains Tax help please!

TheGreenMan

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

eskbanker

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

[Deleted User]

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!!
P

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. 

Mortgage balance is irrelevant.