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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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My son is unemployed and has been on JSA year. To improve

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my son is unemployed and has been on JSA for a year. To improve his chance of finding work he moved from Thanet to Swindon a few months ago and I lent him the £124,000 for the cash purchase of a house there, pending the sale of his house in Thanet, which I had also lent him the money for. The sale went through on 7 May for £115,000. This money was in his account for 2 or 3 days and then £105,000 arrived in my account as part repayment of my loan. He has now been asked to show bank statements and is terrified as he never notified the DWP, as most of the money was not really his, but mine, and the remainder was under allowed limits. What is his position? He can provide the paper trail.
Hello my name is ***** ***** I will help you with this.
Why did he not declare it please?
Customer: replied 2 years ago.

Because the money was not his and was leaving his account immediately to repay me

Was anything in writing?
Customer: replied 2 years ago.

Not that I can lay my hands on instantly but I'm sure I could get confirmation from the conveyancers that in both cases I put up the money. His account will show £105,000 leaving to go into mine, and mine shows the £124,000 being transferred in December 2014 for the sale and £105,000 returning from his to mine in May 2015. There are therefore some very strange coincidences, or else it was a gift - why would I do that? It was a loan and I extracted a post-dated cheque from him for when the sale went through, just in case of accident. My account shows this being returned by his bank as they considered his signature did not match their template. He then paid by transfer. Why would I need something in writing from my son? I don't have that kind of relationship with my children. And why would I just give him £124,000? I'm old and can't afford to chuck it away.

Why didnt he declare this?
Customer: replied 2 years ago.

Because he saw no reason why he would have to because the money was not his and furthermore concerned the roof over his head, which he believed was exempt from consideration as it concerned housing - the sale of one in order to purchase another. It certainly used to be.He is worried now, not because he has done anything wrong and now regrets it, but because he is being passed on to the outsourced, privatised agencies now replacing the civil service and they do not have a very pleasant or reassuring reputation, as does not,either, the sanctions arrangements currently de rigueur. He just needs to know his rights with regard to house sale money, and his legal position.

He should have declared a change in his circumstances then he would not be in the position facing now. Sadly that is the relating of the situation.
But if there is a paper trail and you can prove it went from yours to his and then back again, it shouldn't be a problem. Its only where its fraud can they take action. Clearly here it was a gift, but I would expect you to be interviewed.
If there is any doubt as to whether it was a gift and it does go to Court then yo would need to give evidence to confirm the situation. Bu if you are happy to provide evidence and bank statements it should be ok.
Can I clarify anything for you about this today please?
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