newbie question buying a house for cash 2 people


M

Matt

If I was to buy a house for cash using money from 2 peoples private accounts
(2 people for tax purposes) but the house was bought in only one persons
name are there any implications i.e. is using a partners tax allowance
illegal, IHT or anything else I havn't thought of, i.e. money laundering
checks.
hope this makes sense
Tarcy
 
Ad

Advertisements

M

Mike Muppet

Matt said:
If I was to buy a house for cash using money from 2 peoples private accounts
(2 people for tax purposes) but the house was bought in only one persons
name are there any implications i.e. is using a partners tax allowance
illegal, IHT or anything else I havn't thought of, i.e. money laundering
checks.
hope this makes sense

Last part - not really.

Money laundering kicks in even if you pay cash for a Mars Bar...so yes
to that part.


Mike
 
J

Jonathan Bryce

Matt said:
If I was to buy a house for cash using money from 2 peoples private
accounts (2 people for tax purposes) but the house was bought in only one
persons
name are there any implications i.e. is using a partners tax allowance
illegal, IHT or anything else I havn't thought of, i.e. money laundering
checks.
hope this makes sense
Tarcy
Yes.

Can't really give a more helpful answer than that without understanding more
about the situation, but you do need to consider these things.
 
M

Matt

Basically I've saved a lot of money & put some In my girlfirend's account as
sometimes I breach the 40% tax barrier plus I use her ISA allowance, If I
was to buy a house & it was solely in my name using all the money from both
mine & her accounts am I doing anything wrong?
 
J

John Boyle

Matt said:
Basically I've saved a lot of money & put some In my girlfirend's account as
sometimes I breach the 40% tax barrier plus I use her ISA allowance, If I
was to buy a house & it was solely in my name using all the money from both
mine & her accounts am I doing anything wrong?
No. So long as your girlfriends doesnt mind.
 
R

Ronald Raygun

Matt said:
Basically I've saved a lot of money & put some In my girlfirend's account
as sometimes I breach the 40% tax barrier plus I use her ISA allowance, If
I was to buy a house & it was solely in my name using all the money from
both mine & her accounts am I doing anything wrong?
No, but what's this about "putting money in her account because you
breach the 40% barrier"? How does this prevent it being breached?
Unless I've misunderstood, you've already done something wrong,
such as avoiding income tax by failing to declare income, and hiding
it in her account instead of "making it visible" by paying it into
your own.

Anyway, any problems which you might associate specifically with the
money coming to the seller by cheques or transfers from two accounts
could easily be avoided by getting her to give *you* the money first,
and then for a *single* cheque or transfer to come out of yours for
the actual house purchase.
 
Ad

Advertisements

A

Alan Frame

Mike Muppet said:
Money laundering kicks in even if you pay cash for a Mars Bar...so yes
to that part.
<Baldrick>
Imagine the size of the Mars Bar you could buy for 10,000 GBP cash...
</Baldrick>

rgds, Alan
 
M

Matt

Yeah sorry probably wasn't clear, I earn below the 40% threshold, but with
the interest I earn on savings
it could be breached if I hadn't moved the money, Is this OK apart from the
risks of her doing a runner?
 
A

Arthur

Alan Frame said:
<Baldrick>
Imagine the size of the Mars Bar you could buy for 10,000 GBP cash...
</Baldrick>
The chocolate covering would be 20 metres thick by my calculations.
By the time you'd knawd through it the centre would be crap.
So don't buy one.

Arthur
 
R

Robert

Basically I've saved a lot of money & put some In my girlfirend's account as
sometimes I breach the 40% tax barrier plus I use her ISA allowance,
IANAL but as I see it: a legal standpoint, you have given this money
to her. There are inheritance tax implications for this if you die
within seven years of the gift. If she gives it back to you (so you
can buy a house for example) then that is also a gift and has
inheritance tax implications if she dies within 7 years.

if you were married at the time of the gifts it would be different (no
IHT).

Alnopther thought; if she were run over by a bus tomorrow who would
inherit the money you have put in her accounts? Not you, unless she
has made a will saying so.

Robert
 
R

Ronald Raygun

Arthur said:
The chocolate covering would be 20 metres thick by my calculations.
You must have forgotten to take the cube root.

If a normal Mars bar costs 33p, a £10k one would have to be 30k
times as big (in terms of weight and volume) as a normal one
assuming a fixed price/weight ratio (although a substantial bulk
discount might be in order).

Hence its linear dimensions would be only 31 times that of a
normal one, and if the covering is around 3mm thick, this would
become about 10cm or 4 inches.

Bit of a challenge to gnaw through, but quite doable, I'd say.
 
Ad

Advertisements

R

Rob.

Ronald said:
If a normal Mars bar costs 33p, a £10k one would have to be 30k
times as big (in terms of weight and volume) as a normal one
assuming a fixed price/weight ratio (although a substantial bulk
discount might be in order).

Hence its linear dimensions would be only 31 times that of a
normal one, and if the covering is around 3mm thick, this would
become about 10cm or 4 inches.

Bit of a challenge to gnaw through, but quite doable, I'd say.
It would need more oil to fry though! ;-)
 
Ad

Advertisements

T

Tim

Arthur said:
You must have forgotten to take the cube root.

If a normal Mars bar costs 33p, a £10k one would have to be 30k
times as big (in terms of weight and volume) as a normal one
assuming a fixed price/weight ratio (although a substantial bulk
discount might be in order).

Hence its linear dimensions would be only 31 times that of a
normal one, and if the covering is around 3mm thick, this would
become about 10cm or 4 inches.

Bit of a challenge to gnaw through, but quite doable, I'd say.
You're both wrong!

The bigger Mars bars (think "KingSize") just tend to
be LONGER, not fatter. Hence, the £10K Mars bar
would simply be 30,000 times longer, with similar
thickness of chocolate all the way along the bar...

I'm not quite sure about the practicalities
of a Mars bar over a mile long, though!
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top