CGT Help on Property I may sell
I've had a flat I've owned for about 23 years. It was my first property purchase but I've never lived in it. The purchase price was £38,500 and it's now valued at £125,000. I've always made regular improvements to it but having looked at the HMRC website I understand that you can't just include any annual spend such as the annual service maintenance or replacing broken electrical items etc. What I need clarifying is what I can add. I've been told (by other landlords) that you can add costs of an extension etc which add value but not things like a new kitchen. However, on the HMRC website it gives an example of being able to claim for upgrading a standard bathroom to a luxury bathroom. I've replaced the original bathroom and kitchen with much improved suites so can I add these to my total spend. I know I can include buying and selling fees but is there anything else I can add?
Also, my wife and I have been together 16 years so we share income and costs on everything. I'm the sole owner of the flat but can I justify using my wife's CGT allowance too should we decide to sell? If so how so we then work out the tax banding as I am I 40% tax payer but she is basic tax payer.
I have another query which may or may not affect this. I have a £90k mortgage on this as about 14 years ago I used £50k of the equity to invest in land overseas to build flats as a small business venture. This stalled for many years and whilst the property is at roof stage I've not made any income from it and probably never will!
Based on the info above, would anyone be able to work out how much CGT I would be expected to pay if I sold at £125k?
Thanks in advance for your help.