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I have been following for a long time and have benefited lots from here now want some advice on this.My parents are selling their home and moving away and wanting to gift me the proceeds to put as a deposit for my next house purchase. This money (130k ish) can just be transferred into my account from their account? Would this be affected by the Inheritance tax 7 yr rule? Is there any other issues I may have missed?
Yes it would.
So this is what you do.
Parents take out cash.
Give to you and then over the year/s you feed cash into your savings account.
Better still use a credit card for all your spending and use cash to pay off the bill.
Lenders never concern themselves with how a credit card debt is paid.
As long as it looks good on credit files.
It will then show on your bank account that you live very economically.
It is very easy to pay a credit card debt off with cash of whatever amount.
You can pay off a £5000 credit card debt with cash and it won't cause any issues.
I regularly used to pay £15000 cash to pay off a balance transfer every other month.
Did it for about 5 years.
Never any issues.
Pay that sort of money into a bank account and it causes 'issues'.
There are easy ways to beat the system.
I did it for years.
You just have to be clever as to how you do it.
Do not have any audit trail between you or your parents.
Your parents are perfectly entitled to p### their cash away anyway they please and no way can it be traced.
Cash is king as they say and cash can still be spent untraceably.
So that is what your parents do.
Quickest way is to allegedly gamble it away.
No way will HMRC ever prove your parents didn't spend the money.
If you wish to take the risk of a PET then you could..
I would imagine your parents have 7 years in them.
But of course any lender will want to know whether any clawback from HMRC might occur if your parents don't last 7 years.
I'd go for the option of parents 'spending' the money.
A very effective way of using up cash is to get some large credit limit balance transfer credit cards.
It is then very easy to use cash your parents might be 'spending'.
It won't take long to use up the cash to pay off balance transfer cards and other cards.
Live your life on credit and always use cash to pay off the credit card debt.
Where you may source this cash from is up to you!!
Doing this will show you living a very parsimonious lifestyle according to your bank statement.
This will then put you in an excellent position to obtain a mortgage
As it so happens I use credit cards a lot and use cash to pay off the card debt.
Magically my savings are increasing all the time...........................................funny that!
In about 3 years time magically my savings will be substantial and my credit files will be excellent showing excellent credit status.
It just takes time to create the best situation you need.
The old adage of slowly slowly catchee monkey applies as ever.
Then the Bank of England issues new notes and withdraws the old ones so you just pop into your local branch (if they haven't closed it yet) with your Teesco carrier bag containing the balance of your £130,000 and swop the notes for nice new crisp ones absolutely no questions asked.
Yep no problem at all.
Personally I can prove I have over £450000 in cash from proven origin.
It is very easy to change notes.
You just use them to pay off debts.
A few large credit card limits can be used easily
I'm an expert in working the system and have done so for decades.
It is not as easy now since Balance transfer fees were applied and only certain cards allow funds transfers to bank accounts.
But it is easy to use up cash to to pay off credit card debts.
You just use cards to buy high value items like cars etc and then sell them.
There are plenty of ways to validate cash resources.
Of course it would be very easy to pay in old notes to different accounts and banks and then draw out in new notes.
Done it for decades myself.
I've had millions of pounds rolling through my accounts.
Of course I had substantial credit limits which facilitated my working the system.
Using large credit limits and very large overdrafts totalling about £330000 rolling through accounts 3 times a year for about 10 years you can see how this is achieved.
All legitimate credit cards debts which are cleared by cash.
Your method would take more than 7 years to master (a pet tapers after 4 years anyway)
Why would a lender be concerned if they have a first charge.Every man and his dog are gifting deposits to their kids
Danni wants to buy a house not pretend to be a debt junkie
You obviously have never had an HMRC investigation
Credit card debt is NEVER investigated.
It is when the debts aren't paid that causes problems.
Personally I can prove where all my cash has come from
The OP probably wouldn't be able to so they need to take things a bit more slowly.
But for those able to achieve decent credit limits it is very easy to burn through £130000 cash.
Everything i have ever done was legal.
At no time did I ever breach credit card terms and conditions.
I was just very clever at using them to my own advantage.
Only a couple of times did banks object to my using their services for free!
Two of them shut down my bank accounts.
Didn't stop me.
Left a decent interval then applied for a bank account with the same bank resulting in an even larger overdraft facility which I then carried on using as part of my system.
No bank ever beat me.
The only thing that stopped me was when after about 15 years they changed their terms and conditions.....................which of course is absolutely their prerogative!
Credit card is NEVER investigated ?
You are clearly living in a fool's paradise if you think that
I hope you have tax investigation insurance
I worked the system legally for nearly 20 years.
I even assisted somebody with a DSS investigation showing what and how I created cashflow!
Even had the dopey investigator maintain there was income.
But I maintained that debt is not income and therefore cannot be counted as part of any alleged income.
They agreed in the end; but they could not initially get their heads round the fact that the credits on a bank account were as a result of debt!!
Many struggle with that simple concept.
Believe me I know what I'm doing and have done for decades.
It is very difficult for HMRC to tax debt though of course S24 has somewhat changed things!!!!
You clearly don't understand how the credit card and overdraft system works.
I am not going to educate you as I can't be bothered.
There is no financial advantage for me to do so.
But if you want to pay me to clear any cash you have through the system legitimately then contact me and I'll discuss commission etc!!
Very few people can be bothered to do what I did.
I can assure you whilst it is effective financially it is very very boring
Most people have better things to do with their time.
Unfortunately I had to do the boring stuff to survive.
Needs must and all that.
But I can assure no way could HMRC critique anything I ever did of which I have extensive records going back decades.
I'm on transaction no 39624 on the 5903 transaction page
All legal transactions!!
The OP can easily wash through the small amount through the system perfectly legitimately.
You are seriously deluded.All this coming from somebody who openly boasts he plans to live of multiple undeclared lodgers
Now you claim to have access to multiple streams of cash after previouly stating you will not survive as you are are because S24 will bankrupt you,
You clearly have never been investigated by HMRC unless Ford open prison allows the use of wi fi
You are the deluded one I'm afraid.
What I intend to do has not come to pass.
I aspire to evade tax on lodger income.
I am far away from ever achieving such aspirations.
Many LL have or could have far more money than me to achieve such.
I'll be lucky to even achieve the current RAR A of £7500
You have to understand that it is very easy to manipulate the system
I have done so legally for decades.
The OP would have no problem washing through the small amount of monies.
In about 3 years time I will be disposing of about £180000 in cash.
You have to come outside conventional thinking to create legitimate circumstances.
I have currently 2 credit cards with limits of about £2000 each.
If I pay off a £2000 debt every month in 1 year I pay £24000 in cash per year to clear credit card DEBT!
So as you can see just by creating debt you can repay it with cash and it doesn't flag up anywhere.
DEBT repayment is never a taxing issue!!
Not that I'll ever do it because of the expense but I could transfer cash from my credit cards to my bank account and then use cash to pay it off a few days later.
I could do this about 15 times a month and have paid off £30000 of debt with cash.
Of course I would have withdrawn the cash from credit cards to allegedly repay the credit card debt when in fact it would be in a suitcase!
So as you can see you need to think outside the box to create perfectly legitimate transactions.
Many would not even think of doing such as it is just too much for many to work out.
Don't imagine for one moment that you know everything about legitimate transactions as you clearly don't.
I have shown you a situation which is legally possible.
Now imagine what is achievable with higher credit limits!
Have you ever visited the planet earth ?