Hi Nicho
Every tax payer in England has a CGT allowance of about £8500.00 per year. It will be difficult to offset the £5000.00 the tenant paid out as these are probably seen as improvements and not REPAIRS, unless you can prove otherwise.
Therefore I would assume you will pay CGT at the 40% rate on £7500.00
However, if you are married you will be able to claim about £17000.00 thus reducing your tax liability.
I would recommend you seek advice from an accountant as each persons tax circumstances are different.
warm wishes
Thegameplayer
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