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

AskAsk

user1977 said:

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.

you would be surprised as when i and my ex was asked about source of funds, sending our HMRC returns over the last 2 years pacified them as they could see how much we earn as we had paid tax on it.  you wouldn't declare money you have earned if you haven't as no one wants to pay tax on something they didn't make!

the returns are often accepted as proof of income for other activities as well.  people can pretend that they earn less than what they actually did to avoid paying tax, but no one will pretend to earn more when it comes to paying tax!

sharky101

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.

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

If you’re using crypto gains to buy a property, your solicitor will need to carry out source-of-funds and anti-money laundering checks. While filing your tax return and declaring your crypto profits can provide some reassurance, it usually isn’t sufficient on its own.

If you filed your return through a reputable accountancy firm, you can ask them to provide a letter confirming the profits. Your accountant is required to complete Know Your Customer (KYC) and anti-money laundering (AML) checks when they onboard you, so in some respects they are sharing the compliance risk with your solicitor.

If you have a complex crypto history, specialist services are available (often starting at around £5,000) that can produce a proof-of-funds report. These reports forensically review your crypto activity both on-chain and on exchanges to evidence how the wealth was acquired.

monkey-fingers

Wow! Holy necroposting.

This is from February last year.