11:24 AM, 13th December 2014, About 9 years ago 5
I know I need to get professional advise on this but just wondering if anyone has any ideas in the meantime.
Myself and my ‘now’ ex purchased a house 14 years ago for £280K – we also added to the mortgage an additional £80K as the house required replumbing/rewiring/new windows etc.
We split up 3 years ago and after spending about 9 month on the sofa, I was able to purchase (with my business partner) a flat for me to live in. So basically the flat has been my main residence for just over 2 years.
During this 2 year period I have continued to pay the mortgage and bill on the house.
We hope to sell for around £750K, so after paying off the mortgage of £255K. We will net around £495K. Myself and my ex were never married and even though I have no obligation to offer her more than 50%, I have agreed a 70/30 split in her favour.
So my question is, what is my capital gains tax liability, based on the fact that I will receive around £148K? Does the fact that the house was my man residence for 12 of the 14 years make a difference? Does the fact that I haven’t been receiving any rent/income on the house make a difference?
I guess its pretty gauling that I’m doing the honourable thing by giving a big chunk of equity that I don’t have too, but I then get hit for tax on my smaller chunk.
Thanks in advance for any feedback,