HELP CGT on small flat when paying rent somewhere else

[VS2021]

Hello,

I need advice about Property/ CGT.

In 2013, I bought a small 1 bed flat in London and I have lived there alone between 2013 and Sept 2020. I spent around 8k for cyclical works in 2019 as part of the leasehold agreement.

In Sept 2020, I moved into a larger flat in North London with my partner, we equally share rent there (we don't own the house).
In order to be able to pay my own rent in the larger flat, I let my 1 bed-flat in Sept 2020 and with the rent I collect from there I pay my own rent in the larger flat I share with my partner. After tax from the rent I collect, I have a loss of £100 per month circa in this larger flat. (I get around £750 a month from the rent I collect after tax and my part of the rent in the larger flat is around £850 a month)

Now, I am considering selling the 1-bed flat to buy a larger one, I estimate its value is 60-70k higher than in 2013. Do I have to pay CGT on it even though I used that rent to pay for another rent and I actually personally lose £100 a month? Would I be able to claim the 8k as part of essential expenses of the house and avoid paying CGT on it? How much would that CGT be?

I earn around 50k a year before tax from work, so my tax band is already 40%

Thanks in advance for your time.

[darthblingbling]

You'll get principal private residence relief for the period it was your main residence (likely 2013 to sept 2020) plus the last 9 months of ownership as deemed occupancy.

If you intend to sell soon I would guess that the entire gain would be covered by PPR and you would have no CGT to pay.

I'd concentrate on potential expenses for your rental income.