Seeking Advice on Financing for New House Purchase

abhishop5525

Dear all,

I booked a new build house from Taylor Wimpey (Bristol) in August 2024 with plans to purchase it as a second home. Back then, the stamp duty was around £35,000, but now it's increased to £50,000. My completion date is 30th April 2025.

To help with the costs, I decided to sell my current house in December 2024, and a buyer started the process. However, today, just as we were supposed to exchange contracts, the buyer pulled out. Meanwhile, I had requested upgrades to the new house, which will cost an additional £20,000.

If I proceed with the purchase of the new house (as I’ve already signed the contract), I will need to pay £70,000, but I currently don’t have even half of that amount.

I was wondering if anyone here has experience bringing money from India to the UK? If so, are there any taxes or regulations I need to be aware of when transferring the funds?

Would appreciate any suggestions or advice on my options in this situation.

Thank you!

grumpy_codger

If it's your money or a gift or a loan, I don't see any tax implications, but there are many horror stories around about solicitors and AML checks even for smaller amounts.

Can you remortgage your current house?

Hoenir

What is the source of the money? 

poseidon1

abhishop5525 said:

Dear all,

I booked a new build house from Taylor Wimpey (Bristol) in August 2024 with plans to purchase it as a second home. Back then, the stamp duty was around £35,000, but now it's increased to £50,000. My completion date is 30th April 2025.

To help with the costs, I decided to sell my current house in December 2024, and a buyer started the process. However, today, just as we were supposed to exchange contracts, the buyer pulled out. Meanwhile, I had requested upgrades to the new house, which will cost an additional £20,000.

If I proceed with the purchase of the new house (as I’ve already signed the contract), I will need to pay £70,000, but I currently don’t have even half of that amount.

I was wondering if anyone here has experience bringing money from India to the UK? If so, are there any taxes or regulations I need to be aware of when transferring the funds?

Would appreciate any suggestions or advice on my options in this situation.

Thank you!

The solicitor handling your purchase will require a coherent and easily verifiable paper trail for the overseas money to ensure they are not the proceeds of crime or some form of money laundering.  That might prove a bit of a stretch if the money belongs to someone else.

You also might have some explaining to do with your bank, if funds arrive from overseas with no explanation - see below reason why banks are now required to be in an heighten state of awareness in these circumstances 

https://www.redflagalert.com/articles/aml-compliance/what-is-the-difference-between-smurfing-and-structuring#:~:text=In the UK, there is,the approval of a tribunal.

I assume you are making a cash purchase for the 2nd purchase, but if  mortgage involved, any lender might take issue if the money from India were to  constitute a loan.