Capital gains tax? #confused

[Blueeyes91]

Good afternoon all,

So I’ve gotten myself all confused and hope that someone can dumb it down for me before a solicitor charges me for it.

My ex and I bought a flat in 2016. In 2021 we split up and he refused to move out forcing myself and our daughter to rent a property.

Since 2021 he’s lived in our home. And after many a battling argument he’s finally buying me out (3 years later).

We bought the flat for £200k. Each putting £10k in for a deposit (so total £20k).

He’s buying me out for £25k.

As I’ve been living elsewhere (renting). Will I need to pay CGT because I’ve not been living at the flat?

Fag packet sums...

So your gain is £15k and you lived in it for 5 of the 8 years so you will be entitled to PPR relief for that period (Principal Private Residence relief). So the taxable gain is 3/8 x £15k less £3k CGT allowance = £2,625. That will be taxed at 18% if a basic rate tax payer or 24% if a higher rate tax payer.

Let me know if you need more info OP. You'll need to report and pay the CGT within 60 days of completion of conveyance of the property.