Getting Money from abroad

John_Fla

This is a loooong story but I shall keep it as brief as poss. I sold my flat in Oct to a young couple, first time buyers All good it would seem, After overcoming many a hurdle I am faced with one more problem.

The couple in question, Male British, Female French, The females Mum wants to make a gift towards the purchase of my flat ( quite substantial ) but she lives in France, she tried to transfer the money last week but her Bank in France advised she would be liable to 50% Tax, Thats because she has to transfer it in His name. I found out that the mortgage is in His name only, the young French lass does not even have a British Bank account so the Mother cannot transfer the money as gift to her daughter, Is there any way she can transfer the money avoiding Tax.

Thanks in advance a very stressed John.

Thrugelmir

The gift may well be an issue for the mortgage lender. The funding of the purchase is not your problem. If the couple are not in a position to proceed then remarket the property.

davidmcn

This sounds like more of a French taxation query than a UK house selling query...surely your buyer's MIL is in a better position to seek advice?

Keep_pedalling

France does impose a gift tax, but a parent can gift children up to €100,000 tax free in a 15 year period.

Presumably this girl has a French bank account, so why does her mother not simply pay this money into her daughters French bank account. The daughter can then pay a portion of purchase price (gift tax also applies between married couples)

I think really they need advice from someone with expert knowledge of French tax laws.

John_Fla

Thrugelmir wrote: »

The gift may well be an issue for the mortgage lender. The funding of the purchase is not your problem. If the couple are not in a position to proceed then remarket the property.

Easier said than done, I've already had one buyer pull out after a month and accepted a slightly lower offer for a quick sale.

I really really do not want to loose the house I've bought, am under pressure from the vendor for a quick move, she is unaware of my predicament.

marksoton

John_Fla wrote: »

This is a loooong story but I shall keep it as brief as poss. I sold my flat in Oct to a young couple,

You haven't sold it though.

I'd be chasing them to sort the problem and find a remedy.

G_M

Is this couple married?

If not, this sounds like tax fraud. If as you say, under French tax law a gift is subject to tax unless to family, and the money is going to the Britsh male to buy a property in his sole name...............

If they are married, it may be different, but as suggested above, you need a French tax expert.

John_Fla

No they are not married, It can't be tax fraud as the MIL didn't make the transfer.

Am now trying to find out if the daughter has a French Bank a/c

kinger101

You really need to speak to a French tax adviser. It's unlikely anyone here will know much about French taxation law. Indeed, this isn't even the correct forum for taxation questions. You might repost on the correct forum (cutting tax) on the off-chance you might get someone with knowledge of their laws.

John_Fla

kinger101 wrote: »

You really need to speak to a French tax adviser. It's unlikely anyone here will know much about French taxation law. Indeed, this isn't even the correct forum for taxation questions. You might repost on the correct forum (cutting tax) on the off-chance you might get someone with knowledge of their laws.

I'm new to this forum and was unaware of the one you mention, If a moderator could move this thread to the correct forum that would be fine with me.

booksurr

John_Fla wrote: »

I'm new to this forum and was unaware of the one you mention, If a moderator could move this thread to the correct forum that would be fine with me.

the forum does not work like that. As explained in the "user tools" link at the top of the page next to the photo of the 4 "how to contact us" women, the board is not moderated.
Instead there are unpaid volunteers called board guides who have the ability to move posts - if they see such a request

You may be lucky on the tax cutting board and starting a new post on there yourself may be a lot quicker than waiting for the guide. However, is it currently a bit quiet as most of the regular accountants are on holiday!

I know nothing about French tax - surely you must press the purchaser to sort this out themselves.