House purchase / Money Laundering
Discussion
If its in a UK bank account you will be fine just say savings or investments or whatever. The HMRC may look over everything, they may not. But if its come through the banking system they will see it very easily and no issues. If you are trying to pull a fast one they will probably see that easily too..
I doubt you will find may solicitors these days that will handle physical cash. I know ours will never accept any hard cash for anything. Its debit card or BACS or CHAPS etc.
I doubt you will find may solicitors these days that will handle physical cash. I know ours will never accept any hard cash for anything. Its debit card or BACS or CHAPS etc.
Yes, it's not folding money. It's funds I hold, currently in a foreign bank account. HMRC know all about it. If the solicitor doesn't ask too many questions, then I can honour my CA, so I'm happy. Thanks all.
They have asked before, and accepted a simple explanation. I didn't know of there was a threshold over which it became more difficult, and the questons became more detailed.
Thanks everyone.
They have asked before, and accepted a simple explanation. I didn't know of there was a threshold over which it became more difficult, and the questons became more detailed.
Thanks everyone.
drainbrain said:
garyhun said:
I've purchased many houses for cash and never been asked by the solicitors to account for the cash. There may be a question about "source of funds" but that's about all I remember.
I take it you mean bought without a loan, as opposed to taking a couple of poly bags full of readies into the brief's office........like you might have done 20 or even 15 years ago???As an example, you sell your house and bank the proceeds and then purchase another property for the amount in the account. The answer to the 'source' question is therefore 'sale of former property'.
I've never been concerned about the solicitor knowing anything because I trust him but if, like the OP, you're a little paranoid/concerned then I wonder if just saying something like 'long term savings' would do the trick.
I will move it to the UK in due course. I merely said it was in a foreign bank to explain that it's not in pound notes under the bed. I had no idea that people would take the term 'cash' so literally. 
If you buy a house, or a car, or a painting with your own money, and not with a loan, then what is that if it isn't 'cash'?
If you buy a house, or a car, or a painting with your own money, and not with a loan, then what is that if it isn't 'cash'?
I live overseas and bought a UK house for cash a few years ago, Estate agent wanted proof of funds before accepting the offer, email from my bank overseas was accepted, my solicitor wanted proof that money was 'clean. showed my previous year tax return, to indicate earning and that was OK. Its not a pound for pound proof, just do you have a general source for the funds proof.
We bought in my wife's name, and the transfer had to be made to the solicitor clients account from an overseas account in her name, the money was in a joint account and that was fine, if I made a transfer for my wife to buy there was a implied gift.
No issues and the solicitor was helpful told me the potential issues and I proposed a solution.
I looked at the house and did everything with my wife's power of attorney, when asked where the money was coming from I answered I'll transfer it from my Singapore account, that raised the gift issue, I explained it was a joint account and I didn't literally mean I would transfer it and problem resolved.
We bought in my wife's name, and the transfer had to be made to the solicitor clients account from an overseas account in her name, the money was in a joint account and that was fine, if I made a transfer for my wife to buy there was a implied gift.
No issues and the solicitor was helpful told me the potential issues and I proposed a solution.
I looked at the house and did everything with my wife's power of attorney, when asked where the money was coming from I answered I'll transfer it from my Singapore account, that raised the gift issue, I explained it was a joint account and I didn't literally mean I would transfer it and problem resolved.
Berw said:
I live overseas and bought a UK house for cash a few years ago, Estate agent wanted proof of funds before accepting the offer, email from my bank overseas was accepted, my solicitor wanted proof that money was 'clean. showed my previous year tax return, to indicate earning and that was OK. Its not a pound for pound proof, just do you have a general source for the funds proof.
We bought in my wife's name, and the transfer had to be made to the solicitor clients account from an overseas account in her name, the money was in a joint account and that was fine, if I made a transfer for my wife to buy there was a implied gift.
No issues and the solicitor was helpful told me the potential issues and I proposed a solution.
I looked at the house and did everything with my wife's power of attorney, when asked where the money was coming from I answered I'll transfer it from my Singapore account, that raised the gift issue, I explained it was a joint account and I didn't literally mean I would transfer it and problem resolved.
Thank you, very useful. My earnings for the last three years or so have been effectively zero. I've not drawn dividends, and have invested in a new business, so I can't use my tax returns to explain my apparent wealth. I'll just breach the conf. agreement if necessary, and deal with the (probably non-) consequences. After all, my solicitor has a duty of confidentiality anyway, so she couldn't tell anyone that I had done so. We bought in my wife's name, and the transfer had to be made to the solicitor clients account from an overseas account in her name, the money was in a joint account and that was fine, if I made a transfer for my wife to buy there was a implied gift.
No issues and the solicitor was helpful told me the potential issues and I proposed a solution.
I looked at the house and did everything with my wife's power of attorney, when asked where the money was coming from I answered I'll transfer it from my Singapore account, that raised the gift issue, I explained it was a joint account and I didn't literally mean I would transfer it and problem resolved.
Your solicitor will likely only ask detailed questions if he ends up holding the money on his client account. If the payment of both the deposit and the completion amounts go directly from you to the seller he will likely not ask detailed questions. However, unless your offshore account is somewhere like Jersey and hence connected to the UK banking system you may need to bring it onshore in order to make a same day payment on completion. If your offshore account has an IBAN (so EU + Switzerland, not Dubai, Singapore HK etc) you can likely pay T+1.
Yesterday I sent the lawyer funds he'll need to complete a "cash" purchase on 13/10.
Today's letter from him says:
".....Once the funds are taken from your account can I ask you to let me have a printout showing the funds coming out of your account. I require that for file record purposes".
He is my lawyer (and friend) of some years, we have done around 100 transactions, and for the last few years I have used the same account to send him funds (haven't used a loan since 2009).
A couple of weeks ago he was summoned to attend some kind of money-laundering conference for solicitors in Edinburgh. He told me a bit about it but as usual I wasn't paying attention although, in fairness, it sounded pretty boring.
Usually when he's to get funds we have the following convo:
Him: "what's the origin of the funds"?
Me: "Same as usual. Proceeds of serious organised crime".
Him: "Now now. I didn't hear that".
Me: "Hear what"?
There's some other recent(?) barmy rule where he's not allowed to hold client funds for more than 30 days or something. Not handy.
O I forgot to add. He's actually full blown barmy. Here's one of several books he's written:
https://www.amazon.co.uk/Lord-Atlantis-Raymond-His...
Today's letter from him says:
".....Once the funds are taken from your account can I ask you to let me have a printout showing the funds coming out of your account. I require that for file record purposes".
He is my lawyer (and friend) of some years, we have done around 100 transactions, and for the last few years I have used the same account to send him funds (haven't used a loan since 2009).
A couple of weeks ago he was summoned to attend some kind of money-laundering conference for solicitors in Edinburgh. He told me a bit about it but as usual I wasn't paying attention although, in fairness, it sounded pretty boring.
Usually when he's to get funds we have the following convo:
Him: "what's the origin of the funds"?
Me: "Same as usual. Proceeds of serious organised crime".
Him: "Now now. I didn't hear that".
Me: "Hear what"?
There's some other recent(?) barmy rule where he's not allowed to hold client funds for more than 30 days or something. Not handy.
O I forgot to add. He's actually full blown barmy. Here's one of several books he's written:
https://www.amazon.co.uk/Lord-Atlantis-Raymond-His...
Edited by drainbrain on Saturday 7th October 18:50
drainbrain said:
Yesterday I sent the lawyer funds he'll need to complete a "cash" purchase on 13/10.
Today's letter from him says:
".....Once the funds are taken from your account can I ask you to let me have a printout showing the funds coming out of your account. I require that for file record purposes".
He is my lawyer (and friend) of some years, we have done around 100 transactions, and for the last few years I have used the same account to send him funds (haven't used a loan since 2009).
A couple of weeks ago he was summoned to attend some kind of money-laundering conference for solicitors in Edinburgh. He told me a bit about it but as usual I wasn't paying attention although, in fairness, it sounded pretty boring.
Usually when he's to get funds we have the following convo:
Him: "what's the origin of the funds"?
Me: "Same as usual. Proceeds of serious organised crime".
Him: "Now now. I didn't hear that".
Me: "Hear what"?
There's some other recent(?) barmy rule where he's not allowed to hold client funds for more than 30 days or something. Not handy.
Thank you. I have no problem (and plenty of experience) with the transfer of funds, moving money around the world, the tax, the definiton of 'cash' or buying property. I just wanted to know how much interrogation I could expect over how I came by the money.Today's letter from him says:
".....Once the funds are taken from your account can I ask you to let me have a printout showing the funds coming out of your account. I require that for file record purposes".
He is my lawyer (and friend) of some years, we have done around 100 transactions, and for the last few years I have used the same account to send him funds (haven't used a loan since 2009).
A couple of weeks ago he was summoned to attend some kind of money-laundering conference for solicitors in Edinburgh. He told me a bit about it but as usual I wasn't paying attention although, in fairness, it sounded pretty boring.
Usually when he's to get funds we have the following convo:
Him: "what's the origin of the funds"?
Me: "Same as usual. Proceeds of serious organised crime".
Him: "Now now. I didn't hear that".
Me: "Hear what"?
There's some other recent(?) barmy rule where he's not allowed to hold client funds for more than 30 days or something. Not handy.
NB: I am not using the word 'interrogation' in the Guantanamo Bay sense; although I have used it correctly.
Doofus said:
Thank you. I have no problem (and plenty of experience) with the transfer of funds, moving money around the world, the tax, the definiton of 'cash' or buying property. I just wanted to know how much interrogation I could expect over how I came by the money.
NB: I am not using the word 'interrogation' in the Guantanamo Bay sense; although I have used it correctly.
In reality it probably depends on how well you and your solicitor know each other, and how much business history you have with him/them.NB: I am not using the word 'interrogation' in the Guantanamo Bay sense; although I have used it correctly.
As usual with any supervised and regulated activity he'll have mandatory requirements and advisable conduct.
anonymous said:
[redacted]
Any decent solicitor should ensure everything is done by the book. Admittedly, if they have a long term relationship with you then they can afford to be more flexible in following the rules, but if they care about their future they must cover their behinds by doing it by the book.Amateurish said:
A decent confidentiality agreement will usually allow you to disclose the relevant information to your professional advisers. Check the terms.
Yeah, the Agreement I've got isn't based in UK law, so works differently. I've talked to my solicitor, who knows me (but had no involvement in the CA), and she's satisfied that I'm weird, and often grumpy, but not dodgy. Gassing Station | Finance | Top of Page | What's New | My Stuff