Deputy prime minister and housing secretary Angela Rayner resigned recently (5 September 2025) after it was revealed that she had failed to pay enough stamp duty land tax (SDLT) on her £800,000 flat in Hove.
Rayner mistakenly believed that the flat was not considered a second property for tax purposes and therefore only paid the standard rate. However, subsequent specialist tax advice contradicted this belief, revealing that she had underpaid SDLT by at least £40,000.
Reform UK’s leader Nigel Farage has also hit the headlines in recent weeks about a property purchase. Farage has been accused of putting a house in his partner’s sole name as a way of avoiding more than £44,000 in additional stamp duty.
Although Farage said the money used to purchase the house was “legally hers”, a BBC investigation has raised questions over how Farage’s partner, Laure Ferrari, could afford to buy the £885,000 home in Frinton-on-Sea, Essex, without a mortgage.
Both cases raise important questions about stamp duty savings and source of funds in a property purchase.
What is a source of funds check?
In England and Wales, property sales and purchases are classed as “regulated activities” under the Money Laundering Regulations 2017 (MLRs).
Solicitors and conveyancers who handle property transactions are legally required to check where the money is coming from to fund a property purchase, which is known as a source (or proof) of funds check.
It is not enough for a buyer to say that they have the money to fund a purchase; they need to prove it and show where it is coming from.
Why do conveyancers do a source of funds check?
Property transactions are one of the most common ways in which criminals attempt to launder money. This means that the conveyancing industry falls under the MLRs, and conveyancers and solicitors are required to carry out anti-money laundering (AML) checks when handling a property transaction.
What do conveyancers require for a source of funds check?
In addition to providing proof of identification and proof of address, conveyancers require buyers to provide the following information for proof of funds checks:
- Bank statements. These are typically from the last 12 months or so, and need to show both incomings and outgoings, as well as the level of savings amassed. At Bookers & Bolton, we use an app that links directly with most banks, allowing you to choose and download your bank statements, so there is no need to print hard copies or scan them.
- Evidence of large deposits. If a buyer is providing a large deposit or is a cash-buyer and doesn’t require a mortgage, a conveyancer will need evidence of their funds, such as inheritance papers, proof of the sale of another property, or investment statements.
- Gifted funds. If someone else (a ‘giftor’) is giving money towards the purchase, a conveyancing solicitor will require a signed letter confirming the gift, along with the giftor’s ID and proof of funds.
These checks get more stringent as the risk of money laundering increases. For example, if money is coming from abroad, a conveyancer will need to see evidence of the source and how it was transferred. Buyers will also have to provide a clear paper trail if money has been transferred from multiple sources.
Enhanced due diligence (EDD) is also required for people who are considered higher risk for money laundering activity. Both Angela Rayner and Nigel Farage are politically exposed persons (PEPs), which would trigger EDD checks, such as more detailed questioning about the origin of wealth.
Conveyancers play a crucial role as gatekeepers against money laundering. Failure to complete the necessary checks can result in regulatory penalties and criminal liability.
Conveyancing Solicitors Near Me
Bookers & Bolton has a 100-year history as a law firm, helping people in our local area of Alton and across the UK with their property sales and purchases.
We can help with a wide range of property matters, including:
- Sale and Purchase of Freehold and Leasehold Properties.
- First-time buyers.
- Buy to Let.
- Help to Buy.
- Shared Ownership Schemes.
For most people, buying or selling a property can be extremely daunting. Our specialist property lawyers are not only experienced and knowledgeable but also approachable, making the stresses of moving house or business easier to manage and giving you peace of mind.
Bookers & Bolton is a Conveyancing Quality Scheme-accredited firm and can provide specialist conveyancing services if you are buying or selling a freehold or leasehold property.
We will guide you through the entire process of buying or selling a property, expertly taking care of the necessary stages to ensure your transaction progresses efficiently and as quickly as possible.
We also have access to SDLT calculator Compass. This offers advice for SDLT compliance, helping users accurately calculate tax and submit forms to HMRC, producing certificates confirming the amount they are paying is correct.
Get in Touch
For legal advice from experienced conveyancing solicitors, please contact us on 01420 558 335 or email enquiries@bookersandbolton.co.uk.
