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Buying flat in cash.
VeryMan
Posts: 279 Forumite
Hello! I will use my parent's legit cash to buy a flat that has been taxed as income already. The problem is that technically my parent needs to donate me that sum which incurs also another 'donation tax' in the EU country I come from. I am that country's citizen but I live in UK and pay tax here. My question is, when I buy a flat, will the people here ask me where I got the money from? If I tell them it's my parent's, will they ask if the donation tax has been paid? Is there donation tax in UK? thanks!
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Comments
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No there's not a donation tax in the UK. You might have to prove where the funds have come from however to satisfy money laundering regulations though.0
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My question is, when I buy a flat, will the people here ask me where I got the money from?
Yes you will. You will will need to provide evidence of the source. As it's from your parents then they will need to provide suitable verifiable documentation.
There's no tax. Just international money laundering regulations to be complied with.0 -
Here we go again....
Ageing is a privilege not everyone gets.0 -
Thrugelmir wrote: »Yes you will. You will will need to provide evidence of the source. As it's from your parents then they will need to provide suitable verifiable documentation.
There's no tax. Just international money laundering regulations to be complied with.
I can provide payslips and other proof about the money, is that enough? The question is, will they ask to see if the donation tax has been paid?0 -
I can provide payslips and other proof about the money, is that enough? The question is, will they ask to see if the donation tax has been paid?
No....they will not.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
Your solicitor will tell you exactly what's needed. I doubt very much donation tax will apply to this country. But I'd try and make myself a bit more aware of what's needed to buy in this country to save yourself some worry and hassle.
You can buy 'house buying' books. There is also this link http://www.expatarrivals.com/the-united-kingdom/buying-property-in-the-united-kingdom
I know you are here to ask those very questions but I suspect you have more questions to ask, and it will reduce your stress if you read around elsewhere.0 -
So this is the one bed flat in which you are going to live with the lady you picked up on the forum with her two children?0
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that is not enough since it will very obviously show that you do not earn enough to buy an entire flat for cash. However, the requirement placed on the solicitor who (I assume) will be doing your conveyancing is under the "money laundering regulations" to establish where the money has come from. You are a prime example of why those regulations exist, people brining money into the UK from abroad where it is possible that the money originates from the proceeds of crime. Of course I am NOT saying that is your case, but that is why the rules exist so...I can provide payslips and other proof about the money, is that enough?
your solicitor is duty bound to ask where the money comes from
your answer is a gift from your parents. Your solicitor may ask your parents to confirm that in writing, or he may not once he establishes that it is your parents who are the source, not some !!!!! crime ring. Your parents letter will never be shown to anyone in your country, so your parents do not have to worry about evading your own country's tax process
NO, NEVER, not in a million years, under no circumstances, not going to happen, not how we do it in Britain.The question is, will they ask to see if the donation tax has been paid?
is that clear enough for you?0 -
If the money is currently in the country you are from, will your parents be able to get it to you without incurring this "donation tax"?Let's settle this like gentlemen: armed with heavy sticks
On a rotating plate, with spikes like Flash Gordon
And you're Peter Duncan; I gave you fair warning0 -
Whether your parents evade paying tax or not does not affect your mortgage affordability. You need to declare the gift to your lender. They - via your solicitor - may well perform money-laundering checks on it.
If those checks trigger the tax authorities to investigate the fraud your parents have committed is entirely their problem.0
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