Proof of fund for Stamp duty and land tax

Shabk

Hi

We are buying a house and have been saving the deposit for a while. It is clear cut in the bank account and we can provide that as the source of fund to the solicitors. I was wondering if we need to provide the details of the source of fund for the stamp duty and land tax, too?

davidmcn

Ask your solicitor. They might only need it for the price, they might need it for all the funds you're sending them.

Shabk

davidmcn said:

Ask your solicitor. They might only need it for the price, they might need it for all the funds you're sending them.

Thanks very much davidmcn. The solicitors want to have the proof of fund for all the funds (deposit, stamp duty and land tax) and I wanted to double check if that is normal practice. These things become slightly irritating and probably a bit personal if you think that what they request is more than what the norm is.

davidmcn

It's safer from their point of view - it all goes into their client account, and they don't want to have to keep track of which bits have been checked and which haven't. And in any event there's possibly an argument that they shouldn't be allowing potentially "dirty" money to be used for all the expenses.

AdrianC

Shabk said:
The solicitors want to have the proof of fund for all the funds (deposit, stamp duty and land tax) and I wanted to double check if that is normal practice. These things become slightly irritating and probably a bit personal if you think that what they request is more than what the norm is. 

The solicitors have a legal requirement to satisfy themselves as to the source of any and all funds, through the Anti Money-Laundering legislation.

How they do that is not specified. The onus is on them to be able to justify it.

After all, you can prove that it's all legit, and not the proceeds of crime, right...?

Shabk

AdrianC said:

Shabk said:
The solicitors want to have the proof of fund for all the funds (deposit, stamp duty and land tax) and I wanted to double check if that is normal practice. These things become slightly irritating and probably a bit personal if you think that what they request is more than what the norm is. 

The solicitors have a legal requirement to satisfy themselves as to the source of any and all funds, through the Anti Money-Laundering legislation.

How they do that is not specified. The onus is on them to be able to justify it.

After all, you can prove that it's all legit, and not the proceeds of crime, right...?

AdrianC, thanks for the response. Although I absolutely do not need to explain anything to you to justify my source of fund, I have no problem proving it. I am not a UK national and the underlying reason for my question in the forum was to find out if my solicitor has been racist or not! I live by the book and have no fear of anything.

gingercordial

Shabk said:I am not a UK national and the underlying reason for my question in the forum was to find out if my solicitor has been racist or not! I live by the book and have no fear of anything. 

Our solicitors needed to see proof of the whole amount to cover the deposit and SDLT.  My husband and I are both white and English and this is normal and what we expected to have to show.  So no, it isn't racism. 

Some firms of solicitors might be more or less cautious than others and so may or may not want proof of everything, and may have different requirements for how far back they want to go, but that will be each firm's general policy and not to do with your nationality.

AdrianC

Shabk said:

AdrianC said:

Shabk said:
The solicitors want to have the proof of fund for all the funds (deposit, stamp duty and land tax) and I wanted to double check if that is normal practice. These things become slightly irritating and probably a bit personal if you think that what they request is more than what the norm is. 

The solicitors have a legal requirement to satisfy themselves as to the source of any and all funds, through the Anti Money-Laundering legislation.

How they do that is not specified. The onus is on them to be able to justify it.

After all, you can prove that it's all legit, and not the proceeds of crime, right...?

AdrianC, thanks for the response. Although I absolutely do not need to explain anything to you to justify my source of fund, I have no problem proving it. I am not a UK national and the underlying reason for my question in the forum was to find out if my solicitor has been racist or not! I live by the book and have no fear of anything.

I think you might have got the wrong end of the stick... 

No, your solicitor is not being racist. (I presume they have more clue about your ethnicity than I do)

They are following laws that are in place for very good reasons - and, as you say, those who are not money-laundering have nothing to fear bar a little bit of basic financial admin...

steampowered

Obviously, the solicitor has to do anti-money laundering checks on everything that goes int other client account. Otherwise what is the point of anti-money laundering legislation.

Why would you think differently, unless you were just being deliberately awkward.

It's unbelievable that you are tempted to accuse people of racism simply because they are going through basic anti-money laundering checks that everybody else needs to go through. 

It's a very offensive accusation to be throwing around with zero justification. It's really unfair to be accusing people of racism simply for following the law and doing their job.

davidmcn

You think your solicitor is the sort of racist who expresses it by insisting on doing even more unprofitable admin than they're already required to do by the regulations?

JonMitchell

Shabk said:

AdrianC said:

Shabk said:
The solicitors want to have the proof of fund for all the funds (deposit, stamp duty and land tax) and I wanted to double check if that is normal practice. These things become slightly irritating and probably a bit personal if you think that what they request is more than what the norm is. 

The solicitors have a legal requirement to satisfy themselves as to the source of any and all funds, through the Anti Money-Laundering legislation.

How they do that is not specified. The onus is on them to be able to justify it.

After all, you can prove that it's all legit, and not the proceeds of crime, right...?

AdrianC, thanks for the response. Although I absolutely do not need to explain anything to you to justify my source of fund, I have no problem proving it. I am not a UK national and the underlying reason for my question in the forum was to find out if my solicitor has been racist or not! I live by the book and have no fear of anything.

No, not a single penny of racism attitude from your solicitor. I don't like solicitors but the process you have been asked for proof of your deposit is a normal process for money laundering purpose. I am sorry that the solicitors may have given you the impression they had - but they are just doing a very boring job, so do bear with them. 
I agree to the comments that the rest on the forum said about your situation - try not to be too overly sensitive on this. 
Hope you have a successful move into your property!