Not So Keystone Cops

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Not so Keystone Cops

The danger of watching videos on social media or indeed many films or TV shows is that you can easily form the impression that the Police are fumbling in the dark without much of a clue. Whilst errors or judgement and malpractice are often correctly brought to light, it is rather foolish to assume that this is indicative of the majority.

It would appear that Abid Hussain was under the illusion that the Police were simply not up to the task of catching him for the crimes he committed – namely money laundering and fraud (at the least). Mr Hussain contacted the police in May 2016 claiming that a property that he owned in Acton had been sold without his knowledge or permission for £480,000. The case quickly landed on the desk of officers from the Complex Fraud Squad (FALCON).

The Backfire

The Police soon established the truth, that in fact Mr Hussain had sold the property through a legitimate, albeit complex process. Perhaps hoping to create a web of intrigue, Mr Hussain then told the Police that he had received £770,000 into a bank account, which bore his name, but of which he had no knowledge. However, this was money from a re-mortgage on another property that he owned – that he had initiated (which he had denied in an attempt to further deceive the lender). CCTV evidence of Mr Hussain meeting a solicitor to sign the paperwork was used to disprove his version of events.

Money Bags

It also transpired that CCTV was also used to confirm that he used some of the money that he took from the sale and mortgage to buy a reasonably heavy 15kg of gold bullion, (20kg is the typical airline hold baggage allowance) which it is alleged he took with him to Pakistan shortly thereafter. Having been arrested in the summer of 2016 he was found guilty and finally sentenced on Friday to 5 years and 9 months in prison. The investigation into what happened to the gold bullion continues.

In essence, Mr Hussain has provided a false witness statement to the Police (who presumably he believed to be inept) and then reported transactions as fraudulent (when they weren’t) in order to make them void and leave the property company and lender at a loss. Long story short – he blew the whistle on himself, assuming that the UK police were more Keystone Cops than Sherlock Holmes. So congratulations to DC Richard Kirk who led the investigation of the £1.25m fraud… probably rather elementary.

Dominic Thomas
Solomons IFA

You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on my blog which gets updated every week. If you would like to talk to me about your personal wealth planning and how we can make you stay wealthier for longer then please get in touch by calling 08000 736 273 or email info@solomonsifa.co.uk

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Not So Keystone CopsDominic2023-12-01T12:18:25+00:00

Warning to Landlords (and others)

The Government has made it very clear that tax evasion (not paying due taxes) is illegal and will be prosecuted. Whilst we may all have an opinion about the fairness of the law, failing to pay taxes invariably carries with it the real prospect of prison.

Richard Fuller found this to the cost of his liberty. As a landlord with various properties he failed to properly declare and pay the capital gains tax that was due on those he sold between 2006 and 2013. As a result, he evaded £157,725 of capital gains tax. As of last Friday, he has now begun a 27-month prison sentence and of course assets are being taken to pay the correct tax.

Hidden costs but not hidden taxes

Whilst there will always be people that do well from property investments, the reality is that property is not very liquid. There are also many forgotten or hidden costs – such as purchase and sale costs, insurance, lost rent, improvements, accountancy costs and of course tax on the gains.

It is never worth evading tax. It is illegal and anyone doing so will still find plenty of room at her Majesty’s prison service, despite reports of overcrowding. Mr Fuller was found guilty of cheating the public revenue and fraud by false representation by a jury at Winchester Crown Court.

What the Taxman said..

Richard Wilkinson, Assistant Director, Fraud Investigation Service, HMRC, said:

“Fuller thought he was above the law and decided not to declare or pay the tax due from the sale of some of his property portfolio. It is simply not acceptable to steal from UK taxpayers.

“HMRC will continue to pursue those who attempt to hide their gains on assets, their income, and investigate those who attack the tax system. We ask anyone with information about suspected tax fraud to contact our Fraud Hotline on 0800 788 887.”

Evasion is not Avoidance

In short, don’t mess with HMRC. It is never worth it. Tax evasion is illegal, tax avoidance (which is using legitimate arrangements within the tax laws – such as ISAs, pensions etc) is something that the Government encourage to help reduce reliance upon the State and invest in the UK economy.

Dominic Thomas
Solomons IFA

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Warning to Landlords (and others)Dominic2025-01-21T16:34:24+00:00

As safe as houses… more IHT

As safe as houses…. more IHT

You have probably heard that the nil rate band or inheritance tax allowance is increasing on a main residence, provided that it is inherited by your family and provided that it isn’t worth too much. As probably intended, many are under the impression that this new “£500,000” allowance has started… it hasn’t and many will not see the benefit.

For starters, the new “Main Residence Nil Rate Band” … MRNRB is being gradually introduced from April 2017 starting with an extra £100,000 rising each tax year by £25,000 until the full extra £175,000 becomes applied from April 2020. However if the net value of the estate is worth more than £2m, then this extra allowance is gradually lost. I think that’s called giving with one hand and taking with the other and of course is ignored by those who think that this is a tax break for the super rich…. reality is quite different.

IH405

IHT405 is the form you use to tell HMRC about all of your properties upon death. Have a look at the form, the valuation of a property (or plural) can and will make a considerable difference to the value of an estate. If you have a second (or further) property, then please keep really good records about it. This includes dates and purchase prices, valuations, work done, insurance costs and so on. You need to be fastidious in your record keeping… not least because these records may also be pretty vital whilst you are alive.

Getting your house/s in order

If you have acquired property over the years, perhaps just for your own family use or perhaps as a commercial concern to generate rental income, this all needs accounting…(sorry for stating the obvious). The value of property obviously changes and there is some degree of flexibility in how this is valued for probate… on the basis that what someone will actually pay for a property is more fluid than a simple figure.

As an aside, landlords that are off-setting interest against rental income, thereby reducing profit and tax, are having the amount permitted altered (another feature of the last Budget). So beware! Also as an aside, those with second properties that have soared in value are loaded with capital gains and thus subject to capital gains tax. There are ways to manage this… which I shall outline at another time – but be advised that there are solutions that may appeal.

Dominic Thomas
Solomons IFA

As safe as houses… more IHTDominic2025-01-21T15:48:51+00:00