Any CGT due from selling a flat in Poland?

Nemeziss21 · 14 February 2022 at 8:28PM

I would be grateful for any feedback on the following: I have dual nationality, British and Polish. I own a flat in Poland that currently is being sold after my dad died in November last year.

I didn't buy this property. It's a flat I grew up in and my parents transferred the ownership to me back in 2006. All done legally under Polish law.

I have received an offer on the flat equivalent to about £65,000.

I would like to transfer this money to UK and invest it towards my pension.

The flat in Poland was not rented out and therefore generated no income. My dad lived there up until his death in November.

Will I need to pay any Capital Gains tax in UK and if so roughly how much? I have already found out that CGT are not due in Poland as the flat has been in the same ownership for over 5 years.

Many thanks

Keep_pedalling · 14 February 2022 at 9:05PM

Yes if the gain in value increased above your annual allowance between 2006 and the date of sale. This assumes you have no CGT liability in Poland.

Jeremy535897 · 14 February 2022 at 9:29PM

Assuming that you are domiciled and resident in the UK for tax purposes, you are subject to UK tax on your worldwide gains. The UK-Poland double tax agreement will not alter this. As noted above, the capital gain will be calculated on the difference between the sale price (sterling equivalent) and its value in 2006. If you have no other capital gains in the same tax year, you can deduct £12,300 from the gain. The rest is taxable at 18% or 28%, depending on your taxable income.