buy house with online money

JamesPenny

hi,
i've made enough money online to buy a house outright. i've seen the house i want. it's for £150,000 grand thereabouts. 
the cash is sitting in my account waiting to buy it.
are there any legal hoops i must jump through to buy the house with this money?
as far as i'm aware, cash is cash. but these days there are so many ridiculous rules and laws that may mean i can't use the money - better off without it.
just so you know, i sell on ebay and all that cash is profit over the past 2-3 years or so.
thanks in advance.

macman

So if you are a sole trader and paying tax on your profits then you will have report and accounts and 2 or 3 years tax returns (possibly VAT returns too)  to demonstrate that it's all legitimate. If so I can't see the problem.

hazyjo

Is this the same poster, the Amazon earner one? Very similar story.

greatcrested

If you're 'better off without it' I'll happily take it off your hands!

Yes, these days there are indeed many more rules and laws. Whether they are ridiculous is a point  of view, open to political debate.

But money laundering checks are now part of the property purchasing process, to weed out the pimps, people trafficers, drug dealers and tax evaders etc. (how successfully is again open to debate...).

Provided you don't fall into one of those or a similar racket (oops! 'bracket'), you should be fine.

MovingForwards

hazyjo said:

Is this the same poster, the Amazon earner one? Very similar story.

Apparently it's a different one, but so similar.

Grumpy_chap

Hi James, 
Welcome to the forum, and congratulations on establishing a successful and lucrative business as an e-bay trader.  As you have made that money through your proper business activities, it will all be evidenced where the funds arise from and there should be no issues.  Obviously, the only funds available for purchase of the house are those remaining after clearing your self-employed sole trader income tax and NI (plus VAT if applicable).  Is the cash sitting in your account or your business account?

AdrianC

JamesPenny said:

are there any legal hoops i must jump through to buy the house with this money?
as far as i'm aware, cash is cash. but these days there are so many ridiculous rules and laws that may mean i can't use the money - better off without it.
just so you know, i sell on ebay and all that cash is profit over the past 2-3 years or so.

Who told you "cash is cash"? Was it your Uncle 'Fredo from Palermo? Or Big Vlad who you met on holiday in Moscow? Or perhaps it was your next-door-neighbour's mate's cousin Pablo from Bogota?

It's all very well saying "Just so you know, I sell on eBay", but that's a very good way of money-laundering. Use hooky cash to buy stuff, sell stuff, "Look, ma, legitimate income".

Your solicitor has a legal duty to ensure that the money used is from legal sources. You need to satisfy him.
https://www.fca.org.uk/firms/financial-crime/money-laundering-regulations

macman

If the OP isn't declaring the (lucrative) income, then it wasn't too smart of him to use what is presumably his real name as his username. I'm sure MSE has many avid readers at HMRC...

Scotbot

@JamesPenny You will need to hire a solicitor to complete the transaction. I suggest you get a few  quotes, explain your siruation and ask what paperwork you will need to satisfy the money laundering requirements.  

greatcrested

James has gone quiet despite reading most of the comments above....

[Deleted User]

many ebay traders are legitimate businesses. Its just a platform for buying and selling. Presumably you are all registered as self employed, have declared your income to HMRC and paid taxes. 

Its no different to income from say a plumbing business or being a proprietor in a shop. 

Of course the fact you asked ...... well maybe you already know this is undeclared income and you are testing the waters as to what questions will be asked ?