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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4966
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On the sale of my mothers house in May I had all the monies

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On the sale of my mothers house in May I had all the monies paid into my bank account. I paid my sister by cheque but my brother would not take his(said he didn't have a bank account and wanted me to keep it until he paid for a house)This took 4 months and I was not happy but I have now paid most of it to his solicitors a couple of weeks ago but he is not cashing in the remainder. I sent him a cheque for nearly £29000. If he keeps refusing to take his money am I going to get stung for his tax and how can I make him take this please. I am getting fed up as he was the one who wanted to get the house sold.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. The situation is quite simple and outside the scope of UK taxation. In essence you owe your brother a sum a tad short of 29K and by issuing a cheque you have paid him. The fact that he has not cashed the cheque is an irrelevance. The only possibility that you could be stung for tax is if that 29K odd earns interest in your account in which case the interest and the interest only would for part of your income. I do hope that I have shed some light on the position. If he does not cash the cheque don't forget that you still owe him the money so keep it safe. A good dumping ground might be Premium Bands where it is readily accessible and you might win a tax free prize into the bargain!
Customer: replied 2 years ago.
Cant do that as I put my share into premium bonds! Thanks that does help but I was wondering about the 4 months when I had £113,000 of his in my bank. Does the tax man check your account for the whole year or just the amount in your bank on a certain day? I don't think I should be out of pocket.
Customer: replied 2 years ago.
..and will I have to declare my £113,000 to the tax man although it is now spread out among various accounts please.
He doesn't check it at all unless there is an investigation into your tax affairs. If you earned interest on these moneys then that interest is taxable, but otherwise these transactions are outside the scope of UK taxation and need not be declated.
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