Selling commission

[Dutchnick]

My brother, resident in Cyprus has an Estate Agent who asked to be able to offer our BTL property which we had for sale in the UK for sale himself. He wanted 5% commission which we thought excessive but  as he marketed the property at a price over what we asked  so we thought why not, no extra cost to us. We have accepted an offer and anticipate exchange very soon, on completion our lawyers required the Agents details in order to remit the commission as agreed. Can I authorise this payment in full,? Is there any requirement for withholding some of the payment by the UK tax authorities?I should say the purchaser is resident in Cyprus though I cannot see this making any difference and the agent assures us we should pay in full. I do not want HMRC coming back to ask for money.

[Richlist]

I assume your BTL is in the UK ?

There is the small matter of 'money laundering' that needs to be checked if the purchase money is coming from overseas. Your solicitor (for the sale of the property) would normally deal with this. Is your solicitor in the UK ?

I've never heard of HMRC requiring money to be held back or of them applying a charge to overseas buyers or sellers. I have sold UK property to overseas buyers in the past without any money being withheld or a bill from HMRC.

However, I think I understand why you are asking the question. In some European countries......Spain is the one I know about....a percentage of the money from the sale has to be held back until authorities are happy that all taxes have been paid. This doesn't apply in the UK.

In your shoes I'd go back to your solicitor or HMRC and double  check with them that there are no new rules that will affect you.