This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Life story of an idiot scared of the tax man.

John5674
Posts:2
Joined:Fri Dec 03, 2021 12:01 am
Life story of an idiot scared of the tax man.

Postby John5674 » Fri Dec 03, 2021 1:04 am

Right, thanks in advance for any helpful replies, hope it might help others too,

I'm very stressed and don't know who to ask or trust.

I'm in a pickle.

I made some money from Crypto in 2018 around 50k sold the coins for bank transfer directly into my personal bank account. been worried about not declaring it ever since as I'm self employed (low income less than 20k), I did make some of the money through a bitcoin gambling site (no evidence of this) some from trading. I tell myself it was gambling so no need to pay CGT/ income tax it's all ok... but to be honest I should have a paid some CGT and have no evidence of the gambling, trading or anything I did to make the money other than a few transfers out of my account of a thousand pounds or so to Bitcoin trading sites initially, then the selling of 50k worth of bitcoin for a series of separate bank transfers to individuals.

So with my 50k I wanted to buy a property, I found a place I liked transferred the money 50k to my long term Girlfriend and she bought it in 2019. I've since renovated it, I spent another 50k around 30k was my girlfriends money from remortgaging her place and 20k or so was money I spent from my wages/ savings mostly cash. We moved in around 2020 and rented her place out.

I've just sold it for 265k gave the tenants their notice and we've moved back to hers (accepted an offer in the process of selling whilst moved back to hers currently), she will be getting around 145k after solicitor/ estate agent fees. The 30k from her remortgage we count as my money as that's what I spent on her place doing it up all cash no record of it over a few years so the 145k coming to her is mine, this is all my money what the hell do I do? She can't just transfer it to me I'll surely trigger a tax investigation, would it be a gift?

I know I've done it all wrong and was stupid before you tell me... I work hard, I'm not very intelligent, I just knew at the time I could make money from buying this place and it was a safe and sensible investment but I was not able to get a mortgage, she was at the time and we trust each other.

Any suggestions on how I can legally have my money to do what I like with without incurring huge tax implications.

I'm almost certainly going to be using some of the money to buy another place, I know I could go through her name again but it's stressful for both of us and I'm in a position where I could get a mortgage now better credit rating, older, less debt etcetera

ps. I will actively reply and update the situation if I act on any of the suggestions or advice not just post this and disappear. :geek:

pawncob
Posts:4877
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Life story of an idiot scared of the tax man.

Postby pawncob » Fri Dec 03, 2021 11:13 am

If she bought and occupied the property with the intention that it became your girlfriend's PPR, then (depending on whether she nominated it as her PPR) there may be no tax liability.
It's not too late to nominate.
Did she pay the higher rate of SDLT as it was her second property?

Alternatively, if she intended to do it up and sell it, then she's trading and must register as S/E and include it on her next tax return. You'll need specialist advice here, as you have no records of expenditure.
Some evidence of the loans made etc would be useful or it could be claimed that there was a defacto partnership, which again requires registration.
With a pinch of salt take what I say, but don't exceed your RDA

John5674
Posts:2
Joined:Fri Dec 03, 2021 12:01 am

Re: Life story of an idiot scared of the tax man.

Postby John5674 » Fri Dec 03, 2021 4:43 pm

If she bought and occupied the property with the intention that it became your girlfriend's PPR, then (depending on whether she nominated it as her PPR) there may be no tax liability.
It's not too late to nominate.
Did she pay the higher rate of SDLT as it was her second property?

Alternatively, if she intended to do it up and sell it, then she's trading and must register as S/E and include it on her next tax return. You'll need specialist advice here, as you have no records of expenditure.
Some evidence of the loans made etc would be useful or it could be claimed that there was a defacto partnership, which again requires registration.
Thanks for the reply, really appreciate it.

At the time she had a full time paye job, she's never registered to do a self assessment. We were both on the the electoral roll as living there all the bills there etcetera since early 2020 now we're transferring everything back to the original place. Not sure how one would nominate where they live principal place of residence is that what it stands for ? who do you tell?

She had no intention other than helping me because I couldn't get a mortgage. I bought the property with the intention of doing it up selling it or renting it out to better our lives, but we ended up moving in and renting out the other one because I ran out of money and the one we were living in was finished ready to rent out we moved into the new one half finished, she did have to pay the higher rate SDLT stamp duty when we bought it, well I did. She's put none of her own money into it in reality and when it's sold she'll want to transfer the money to me which is what I'm worried about how the hell do I explain it, if or more likely when the tax man asks.

pawncob
Posts:4877
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Life story of an idiot scared of the tax man.

Postby pawncob » Sat Dec 04, 2021 11:52 am

You nominate by writing to HMRC.
https://www.gov.uk/tax-sell-home/nominating-a-home
With a pinch of salt take what I say, but don't exceed your RDA


Return to “General”