CGT on a Polish Property - no PPR

[JustynaPL]

Hi,
Just wanted to double-check if my understanding of how to handle a tax from a sale of property is correct.
My husband's parents bought a property in 2011 which they then gifted to my husband in 2022. My husband lived in this property between 2011-2020, so before he became its owner.
He is currently UK tax resident and he has been renting this property from time to time. For 2024/2025 tax year he will need to submit his first self assessment.
We would like to sell this property soon. We have received an official confirmation from the tax office in Poland that my husband is exempt from any tax on this sale in Poland because all money gained from it will be used to pay off the mortgage we have on another property in Poland. However, my understanding is that he is still eligible to pay the Capital Gains Tax in the UK which would be calculated based on the difference between the cost of the property when it was given to him by his parents and the value he will get for it now.
So let's say the flat was worth 70,000.00 GBP when he got it in 2022.
Now he will sell it for 90,000.00 GBP.
The difference would be 20,000.00 GBP - from this we can deduct the 3,000.00 GBP CGT allowance, and in the end he needs to pay 20% (he's still within this threshold) on 17,000.00 GBP because he would not qualify for PPR since he has not lived in the property when he actually owned it.
Additionally, I take it we can deduct the costs that would be related to this sale, like notary, etc.
I would appreciate it if someone could just confirm if I got it right.
Thank you in advance!
Justyna

[wamstax]

Yes you've got the handle on it

[bd6759]

My only comment is that the valuations should be done in Zlotys and converted to sterling using the rates applicable in 2022 and on the date of sale. FX fluctuations can affect the gain.

[AGoodman]

Just to add that the rate isn't 20% on residential property - its 18% basic rate and 24% higher rate.

(in fact the regular rates are 18 and 24% as well now - they increased on 30 October with the Budget).