My CGT nightmare.. Please help

[noidea1]

I bought my flat in 2003 for 133k an interest only mortgage,
2006 I moved out ( bought family home, marriage, baby ......then boom divorce)
property rented out - most of the time from since 2006 ( 6 months or so its been empty) to Septermber 2017.

Last year I had to take a secure loan/ charge of 45k against my rental property to ease some debt.I still have 50k debt left.
I know I sound like an idiot but I didnt know the complexity of CGT and i thought it would be a case of sell rental home, pay off the mortgages ( 133k + 45) and then give the tax man % of the money left over ....I then pay off my other debt and start again.

NOw im worried there isnt enough in the pot to sell and start a fresh im petrified that i will lose my main home for my son and i because of the rental making a loss and getting trashed all the time and my cards debt is mounting up.
I realistically think i can sell the place for 280 or 290k I just want to know what i HAVE to sell it for to get everything paid off.
Please can someone help me with calculating the CGT . I struggle enough with the yearly tax return never mind this !!!
i did put a new kitchen in the rental and a dampcourse for approx 20k.

Thank you...........

[maths]

Ignoring the 20k the gain will be circa 50K taxed at 18%/28%.

[someone]

Maths, am I missing something or have you misread?

Isn't the gain around 150K assuming the purchase price was 133K (not clear if this was the mortgage or the purchase price)

To the OP you will get your purchase price + 11K + any other capital expenses/legal fees on purchase/sale etc tax free and will pay cgt on the rest.

If you bought for 133 and sell for 283 you'll pay cgt on 140. Worst case you'll keep about 100K of that - 45 will go to pay off the second mortgage and 55K to clear the rest of your debts. (You might keep more)

[someone]

Just to add, the other 133K will go to paying off the original mortgage in case you're wondering where it went.

[maths]

"I bought my flat in 2003 for 133k an interest only mortgage, 2006 I moved out "

Took this to mean he occupied the property as a residence and hence private residence relief.

[someone]

Good point. I missed that.

[CashingOut]

I think there may be some other reliefs/deductions around:

Sale price say 280K after all agent and legal fees.

Deduct : Cost price 133K (plus any other acquisition costs like professional fees and stamp duty)

Deduct: Improvements. 20K

Gross gain. 127K

Years owned 15 years

Years main residence: 4 years

Last 18 months always exempt (if used previously as main residence)

5.5 years out of 15 is tax-free

So 9.5 years are not covered by the main residence exemption.

9.5/15 x 127K = 80K

Less a 40K deduction for letting relief (Full 40K available as principal private residence amount is > 40K)

Less an 11K deduction (assuming otherwise unused) for annual CGT exemption

Chargeable Gain 29K

Taxable at 18% to the extent your basic rate band is unused in the year of sale and 28% thereafter.

Even if the whole gain were taxed at 28%, the tax bill would be less than 10K leaving enough funds to clear the debts mentioned.

Figures would need to be amended for the precise time-frames involved.

[CashingOut]

Sorry Maths - I did you a dis-service. Your figure is entirely consistent with my analysis given that the 50K ignores the £20K improvements.

[maths]

No problem. Am impressed I got it right!