Buying new home in cash
 

I'm not sure how tricky this would be but, I wonder if its a good idea.

The money is legal but its also all over the place (outside uk) will this be a problem? if so what should one expect?

I'm talking about a 500k property.


btw

http://www.bbc.co.uk/news/business-13116262

Re: Buying new home in cash
 

They don't literally mean cash, simply no mortgage. You can pay by cheque.

Re: Buying new home in cash
 

I understand but its it advisable to write a 500k cheque to solicitor?

If things go wrong, will the money be protected by Financial Services Compensation Scheme (FSCS)?

What is it advisable to use one or separate accounts to make this payment?

What about the Tax issues?

Re: Buying new home in cash
 

Solicitors have separate client accounts and it is quite normal to write them a cheque for a property purchase.

As for any tax liabilities on taking money into the UK that depends on your specific situation, how long you have been non-resident etc.

If the property is to be let, then your net rental income is taxable.

Re: Buying new home in cash
 

Shouldn't be a problem.

But, a mate of mine just did this. Took him months as he had to prove where he got the money from to meet KYC/Money laundering checks in the UK. Was a real hassle, but a nice problem to have.

Re: Buying new home in cash
 

My mate in UK who is a tiler and only ever deals with the folding went to buy a car from a Ford main dealer and was limited to how much he could spend 'in cash'. GBP 8k I think it was so he got a second hand Focus for 7,999

Re: Buying new home in cash
 

give me the money and I'll sort it out for you ;)

Re: Buying new home in cash
 

If you have dealt with the solicitors before then it shouldnt pose much of a problem - however if you are doing a transaction with a new solictor they will need Know Your Client details (usually passport, address and utility bill).

The money is always in a segregated account.

You will have to make sure that the solictor is part of the Law Society as they usually offer compensation as well - the FSCS does cover the transaction.

When transferring large amounts i always test the account with $100 to go (to make sure no transpoition errors - i have made a BIG mistake like that before !!) - else take a bankers draft directly to the solictors during a weekend trip !

For tax - use a company to reduce/limit your tax bill