tax implications for property purchase in uk with part deposit from polish sister

magikmarky

Hi there,
i am currently a discharged bankruptee and i am very fortunate that my dad wants to buy my family a house. he is providing £140000 cash and my partners sister from poland wants to send £30,000 to her to transfer to my dads solicitors account . the property will be owned by my father for now due to my bankruptcy until he sees that i am managing ok financially. for polish tax reasons it has to be sent to a bank account in my partners name and then she was to transfer immediately to my fathers solicitor.

What i need to know is there any tax implications on this from the uk side as it will be done officially through polish tax office at their end, and my partners sister will be paying them the appropriate fee.

Can my partner just open a new bank account in her name, her sister then transfer the money to the new account and then my partner send it straight to my dads solicitor to complete the house purchase, then close the relevant account.

if anyone has a clue can you let me know as so far all the people i have spoken to are very vague about the situation.

thx in advance to anyone who can help

cheers,

mark:money:

p.s. there are no mortgages or loans involved at any stage of process

G_M

I don't see any tax issues.

However, if you've neen bankrupt, how come you own a home?

ViolaLass

G_M wrote: »

However, if you've neen bankrupt, how come you own a home?

Doesn't sound like they do.

OP, why would your partner need to open a new account for this and then close it. Do they not have an account already?

AdrianC

No implications at all - Poland and UK are both EU countries, free movement of capital.

davidmcn

Not aware of any tax implications, though be aware that to comply with money-laundering regulations the solicitor is likely to ask for identification from everyone who is handling the funds and a paper trail showing the ultimate source of the money.

agrinnall

ViolaLass wrote: »

OP, why would your partner need to open a new account for this and then close it. Do they not have an account already?

This. To be honest, opening and then closing an account after a single transfer in and out could well scream money laundering to the bank's compliance team. Far better to use an existing account that is already being operated successfully, although your partner should still expect to have to answer some questions before the money is transferred out.

[Deleted User]

Why not wait until the bankruptcy is discharged then it doesn't look as if you are avoiding paying due money re the bankruptcy.

I'm sorry, but its a bit risky having your father 'gift' money to your partner. Things can change quite abruptly in any relationship. Your partner will own the house. Its not something I would do.

Just wait. Much better.

Otherwise its risky and well, skating a bit close to the wind.

OR why not have your father buy the property outright - perhaps a cheaper property in another area? Then there's no question as to who owns it if things go wrong.

sheramber

deannatrois wrote: »

Why not wait until the bankruptcy is discharged then it doesn't look as if you are avoiding paying due money re the bankruptcy.

I'm sorry, but its a bit risky having your father 'gift' money to your partner. Things can change quite abruptly in any relationship. Your partner will own the house. Its not something I would do.

Just wait. Much better.

Otherwise its risky and well, skating a bit close to the wind.

OR why not have your father buy the property outright - perhaps a cheaper property in another area? Then there's no question as to who owns it if things go wrong.

In the first post the OP says his father will own the house, not his partner.

His partner's sister is gifting some money to his partner who will pass it to his father for the purchase.

Penelopa.Pitstop

magikmarky wrote: »

for polish tax reasons it has to be sent to a bank account in my partners name and then she was to transfer immediately to my fathers solicitor.

What i need to know is there any tax implications on this from the uk side as it will be done officially through polish tax office at their end, and my partners sister will be paying them the appropriate fee.

No tax to pay in Poland, sister will just declare gift to local tax office and it will be tax free.

I don't see why partner needs to open any new account, just transfer it to an existing account. Unless sister assumes that if account is joint, it will be seen by Polish Tax office as gift to both of you. But she can write proper gift document stating it's only for partner and declare the same on tax forms.

No tax implications in UK.