Financial advice needed for a complicated mortgage

ctb1988

Hi all,
I'm new here, so please bare with me.

I (like many othes) would like to buy a home. I'm in a full time employment (PAYE).
The house costs around £300k,my mortgage company/bank would lend me £115k, I personally have around £100k in savings,so I need an extra ~£85k.

A (distant) family member has a Company and said that he would "give" me the £85k from his Business, to a new business bank account that I would need to open after I get my UTR number which I applied for as a self-employed.

My questions are: Can I use that money? (Transfer it to my main bank account?)
Do I need to pay tax on that money as an income? How much? What sort of tax?
Is there a way to declare that money other than an income and use it for this purpose?

Will the mortgage company/banks ask questions about that £85k?

Is this option viable at all?

Thanks in advance for any other information I need to know and any answers will be greatly appreciated.

Linton

Sounds very dubious.  If the family member wants to give you money he can just do that with no tax whatsoever.  There is no need to pretend to be self employed or to set up a business account.  But a gift must be a real gift.  It should be accompanied by a signed letter to the effect that the money does not need to be paid back. 

Yes, banks and mortgage companies are very likely to ask questions about £85K suddenly turning up in someone's account.  Perhaps this family member would prefer that this did not happen.  

From what you have said I suggest you tell him "Thanks but no thanks".

haras_n0sirrah

Due to money laundering legislation both brokers and solicitors have to identify the source of the funds and confirm it is from a legitimate source. 

Grumpy_chap

ctb1988 said:

A (distant) family member has a Company and said that he would "give" me the £85k from his Business, to a new business bank account that I would need to open after I get my UTR number which I applied for as a self-employed.

How distant a family member?  (I just want to check whether I am related too as I could do with £85k )
A business cannot simply "give" money away.  The family member can, but would need to do so from drawings after tax.
Your new business can also not simply receive a "gift" - would it be shares that the other company is buying?  If your new business received funds for a non-existent invoice, then you would be subject to tax on drawing the funds from the business.

Need to have clarity, but it sounds difficult to implement as described in your OP.