moneyman

Hi moroccobound,

Are you saying that if I bought a property on resale from another investor and I was paying £30k to him and £70k (as stage payments) to the developer, the £30k is considered black money????

Please forgive my ignorance and bear with me as I'm new to this and just like to understand this in a little more detail. May be its best with an example.

Original price of the property: £70,000
On resale market: £90,000

If buying this property, money to be paid to the original investor: £20k profit + £20k deposit already paid to developer.

Balance payment of £50k (original amount balance) in stage payments to developer.

Now, my £20k profit to the investor will not be accounted for since that is paid in the UK.
The deposit of £20k will have been accounted for by the original investor as paid to the developer.
My balance of £50k to the developer in stage payments will be accounted for.

So all in all, my "traceability" of funds is limited to: £50k even though I am buying for £90k.

Sorry for the detailed post, but I'd like to understand this from an example point of view.

Thanks in advance for your help.