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    • houseyhouse
    • By houseyhouse 13th Mar 18, 8:03 PM
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    houseyhouse
    Giving someone money (from EU) to buy a house
    • #1
    • 13th Mar 18, 8:03 PM
    Giving someone money (from EU) to buy a house 13th Mar 18 at 8:03 PM
    Hi everyone!

    A bit of a convoluted situation, but I'll do my best to clarify.

    I live in EU and will inherit a house (in EU) from my aunt, and sell it. However, there is a person who is much more deserving of the house and the money, and I want to give the money from the sale of the house to him (cca 160-180k GBP).

    The person I want to give this money to is an EU citizen living in UK since 2014, and I'm sure he'd like to buy a house there

    However, I am unsure how to do it. He is a UK tax resident, so rules in my country won't apply. If he were a resident here, he'd pay 4% on whatever I give him. Naturally, I wouldn't want him to have to pay anything, but hey, what can you do.

    Thank you all for your time!
Page 1
    • kinger101
    • By kinger101 13th Mar 18, 8:11 PM
    • 4,302 Posts
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    kinger101
    • #2
    • 13th Mar 18, 8:11 PM
    • #2
    • 13th Mar 18, 8:11 PM
    Nobody on here is likely to be an expert on taxation laws in whichever country you live in, so they cannot really advise. Speak to an accountant where you reside.

    The tax-residence or domicile of the recipient is likely to have little impact on the taxes you'd have to pay. So that last statement about "rules not applying" is very likely incorrect.
    • houseyhouse
    • By houseyhouse 13th Mar 18, 8:16 PM
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    houseyhouse
    • #3
    • 13th Mar 18, 8:16 PM
    • #3
    • 13th Mar 18, 8:16 PM
    Thank you for your reply!

    I should have clarified that I will not have any tax implications on sending the money, I have already checked this in my home country!

    I will pay inheritance tax on the house, and then sales tax once the sale is complete, after which I am free to send this money abroad, or even take it in a briefcase if I wish to do so, as long as I declare it.

    I just don't want to get him in any trouble though, that's all
    • kinger101
    • By kinger101 13th Mar 18, 8:21 PM
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    kinger101
    • #4
    • 13th Mar 18, 8:21 PM
    • #4
    • 13th Mar 18, 8:21 PM
    Well, he's not liable for any UK taxes merely for receiving a gift of money. As long as you're not UK domiciled, in which case, it would be classed as a lifetime transfer for inheritance tax.

    What might be a problem (assuming he wants to buy a house) is confirming the source of that money. Solicitors are required to conduct money laundering checks. So you need to leave some sort of an audit trail.
    • agrinnall
    • By agrinnall 13th Mar 18, 8:22 PM
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    agrinnall
    • #5
    • 13th Mar 18, 8:22 PM
    • #5
    • 13th Mar 18, 8:22 PM
    I don't see that there will be any taxation issues in gifting the money. What is more likely to be difficult is ensuring that the recipient doesn't fall foul of anti money laundering laws. Make sure that you have a full audit trail of the source of the money and your right to possess it, and pass that on to him so that he can provide it if asked by his bank. Others have said in the past that advising the bank in advance that the money is coming can help, although I'm a bit doubtful about that myself.

    Cross posted with kinger.
    • davidmcn
    • By davidmcn 13th Mar 18, 8:24 PM
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    • #6
    • 13th Mar 18, 8:24 PM
    • #6
    • 13th Mar 18, 8:24 PM
    or even take it in a briefcase if I wish to do so, as long as I declare it.
    Originally posted by houseyhouse
    Even if it's not transferred in a briefcase, your friend should be aware that his solicitor will ask for evidence of where the money has come from, so will at least want your ID, and may have concerns about the fact it's from overseas (even if within the EU). If your friend also requires a mortgage then the lender will usually expect the equity to come from their own funds rather than a gift - and many will only accept a gift from a close relative rather than a friend.

    But otherwise, there are no UK tax implications or reasons why your friend will get into "trouble".
    • houseyhouse
    • By houseyhouse 13th Mar 18, 8:33 PM
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    houseyhouse
    • #7
    • 13th Mar 18, 8:33 PM
    • #7
    • 13th Mar 18, 8:33 PM
    He is not my relative in any official way. He would be buying the house outright without a mortgage.

    Glad to hear that tax is not an issue, and I understand that he still has to prove it has nothing to with money laundering, so I'm guessing that this will be the problem, as I doubt any solicitor will accept my inheritance papers as they won't be in English. My source for the money will be "clean", and then I would give this money to him, but I don't know what's the best way to prove this to anyone doing AML checks.
    • TBagpuss
    • By TBagpuss 14th Mar 18, 9:47 AM
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    TBagpuss
    • #8
    • 14th Mar 18, 9:47 AM
    • #8
    • 14th Mar 18, 9:47 AM
    Well, papers can be translated!
    • davidmcn
    • By davidmcn 14th Mar 18, 9:49 AM
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    davidmcn
    • #9
    • 14th Mar 18, 9:49 AM
    • #9
    • 14th Mar 18, 9:49 AM
    Well, papers can be translated!
    Originally posted by TBagpuss
    Indeed - it's not insurmountable (obviously, plenty of EU nationals in the UK who get money for their purchases from the Bank of Mum & Dad in the homeland), but it's more complex than standard and that might in itself scare away some solicitors, so best if the friend asks solicitor upfront what they will need.
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