Getting on the property ladder with a large deposit from crypto profits

homeless9

I know someone that is now trying to get onto the property ladder with a crypto deposit, but they say it isn't that easy. I wondered what the current state of play is with this and how to succeed in getting the green light....

Does anyone have a guide for this...

Do you need to simply ask a load of brokers if they can help and if so - the broker sets the path...they find deals with crypto friendly lenders....then pass you onto a crypto friendly solicitor?

Then they go through the money laundering checks? - want crypto exchange transaction history to see money going in via your bank account and out via your bank account?

Anyone that knows crypto will have heard of Coinbase - this is an on and off ramp for crypto where you can buy some crypto tokens, but not all. Even if you have done some crypto trading on other exchanges, do the money laundering checks only need to revolve around the on/off ramp that is coinbase if that's how someone put their money into crypto and got profit out?

Hoenir

homeless9 said:

One other question - does anyone know if these money laundering checks also involve checking you paid tax on the profits?

Information gets reported and shared. Also the HMRC have a database that enbles them to Connect the dots. Every day people receive the dreaded have you overlooked to tell us something letter. 

theartfullodger

Were these crypto  gains declared (yet ?) to HMRC for CGT?

Oliverleo

theartfullodger said:

Were these crypto  gains declared (yet ?) to HMRC for CGT?

Not yet, but they will be reported to HMRC by CGT requirements.

homeless9

theartfullodger said:

Were these crypto  gains declared (yet ?) to HMRC for CGT?

Mine were and always have been.

Whether the person I am talking about who is trying to get on the property ladder has paid their taxes - I do not know.

newsgroupmonkey_

homeless9 said:

theartfullodger said:

Were these crypto  gains declared (yet ?) to HMRC for CGT?

Mine were and always have been.

Whether the person I am talking about who is trying to get on the property ladder has paid their taxes - I do not know.

Yes. They said not only they had, but it was some years ago, which was all the more worrying.
They'd since removed it from Bitcoin and invested for a year or two with Hargreaves Lansdown.

homeless9

As I haven't got many replies and the replies that I have got revolve around tax...I have simplified my original post....

If anyone can help who has bought a house recently with a deposit that included large crypto profits, or any broker / mortgage advisor that deals with deposits that came from crypto profits....then I'd love to hear your experiences.

Hoenir

Be the solicitor handling the purchase that would be performing AML checks on behalf of the lender. 

AskAsk

if the profit had been declared to HMRC then the tax returns can be submitted to the solicitors and they will ok with it as they will think that the tax man would be aware of any problems already so if nought is said, then it is fine and there is nothing hidden.

but without the tax returns i doubt you will get far as it is hidden money.

AskAsk

Hoenir said:

Be the solicitor handling the purchase that would be performing AML checks on behalf of the lender. 

ALM is not just on behalf of the lender but mainly for her majesty government to detect money laundering and tax evasion and criminal activities.

user1977

AskAsk said:

if the profit had been declared to HMRC then the tax returns can be submitted to the solicitors and they will ok with it as they will think that the tax man would be aware of any problems already so if nought is said, then it is fine and there is nothing hidden.

Nonsense. The fact their client has submitted a (self-assessment) tax return gives no comfort at all to the solicitor about its contents or the source of the funds - and even if HMRC have queried something, the solicitor wouldn't know.