Buying property first time - HELP/advice needed :(

joe7777

Hi there,

I would REALLY appreciate anyone with a little more knowledge than me to share their advice on my situation -

I am buying a property and my solicitor has told me in his opening letter he has a duty to enquire on the "source of funds".

To be honest I would much rather keep this private and to be quite frank don't think this is any of his business.

My money is currently held in a UK clearing bank. (I believe this is good)

The money is from a website domain sale I did online recently.

Although my sale was totally legit and went through a secure escrow service.
I worry this will complicate things as its a pretty unusual method to have recieved such a large ammount of funds. Also my buyer on the otherside of the escrow is from Israel, is this going to raise more issues? suspicion, time wasting?

As you can imagine I want to get into my new property as soon as possible. Im thinking I just tell him the money is from inheritance from my grandad it will be done quicker.

How likely is it he will look into this further if i tell him its inheritance money?
Do solicitors usually look into inheritance further?

I would really appreciate anyone who could shed some light on this for me!

Thank you SO much, Joe.

tek-monkey

Money laundering laws mean you have to declare these things, otherwise all drug dealers would be BTL millionaires. Just tell them, if its legit what does it matter?

G_M

unlessof course you're worried about the Inland Revenue......???

Running_Horse

Why don't you want to answer this perfectly reasonable and standard question?

Just tell the truth and get on with it.

joe7777

I am worried because the areas of domain taxing are "grey". Many people recommende not declaring it, but im worried my solicitor will look into it as it is a pretty unsual way to recieve such a large ammount of funds and i'm not sure what the outcome will be, most people say its classed as intangible because its not a physical possesion/property.

This is a really nice little apartment that I think me and my partner deserve as i've now given up a website I worked a very long hard time on and no longer have any income at all.

I am young and think the solicitor would believe "inheritance" but as this is the first time i've bought a property.... I don't know know much about it.

Any advice much appreciated,
Joe.

Raggie

you should never lie to your:

Solicitor....
Accountant....

or

Priest....

They are there to work and help for you.. they can do neither of these if they don't have all the facts...

Tell them everything and let them advise......:p

pie81

Your solicitor is working for you and has a duty of confidentiality to you. There is an exception to this - he has a duty to report to the authorities if he thinks your money is proceeds of criminal activity - drugs, theft, etc. That is why he needs to know where the £ comes from.

However he doesn't have to (and indeed can't) report you to HMRC just because he thinks you might owe some tax on that money.

Am pretty certain this is the case but hoping some of the friendly neighbourhood solicitors round here will confirm/deny.

pjcox2005

I think this won't be treated as a helpful comment, but to me it sounds like you have disposed of a business (i.e. a website you've made/run for a long time and earnt a living off, now sold, with no new website etc being designed i.e. now no income). Surely that sale would be taxed under Capital Gains Tax.

I assume as you say its a grey area, you've approached HMRC to discuss and ask for guidance on how it should be taxed?

Apart from that I would agree with other posters that you should just tell your solicitior that the funds have arisen through the sale of a website, as they are quite important checks for them to carry out.

Running_Horse

And if tax is due, that won't suddenly change because you spend the money on something else. I should know; my father went to prison for similar offences in the 1980s.

tek-monkey

joe7777 wrote: »

I am worried because the areas of domain taxing are "grey".

Surely you owe tax in whatever country your business is based? Did you pay anyone tax?

EDIT: I had HMRC after me for a few years, you have no idea the feeling of dread every time a brown envelope hits your floor

superfran_uk

Do not lie. No good can come of it.

(Was it a !!!!!! site?!)