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Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10408
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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My son and s family are in some financial difficulties. We

Resolved Question:

Hello. My son and his family are in some financial difficulties. We are considering taking an unsecured loan of 20K£ in our names to restructure his debts. Are there any tax implications for me or my son in doing this.
Thanks for any advice you can give
Submitted: 10 months ago.
Category: Law
Expert:  Aston Lawyer replied 10 months ago.

Hi,

Thanks for your enquiry.

There are absolutely no immediate tax implications, if you were to take out a loan in your names and then give or loan that amount to your Son.

The only potential tax implication is that if you are gifting the sum to your Son, it would be seen as a lifetime gift, which means if you were to die within 7 years, the sum (or a percentage of it, depending on when you died) would still form part of your Estate when calculating if Inheritance Tax is payable. (As a couple, you have a tax free joint Estate of £650,000 for Inheritance tax purposes).

I hope this assists and sets out the legal position.

If I have helped, I would be grateful if you could rate my answer.

Kind Regards

Al

Customer: replied 10 months ago.
Thanks for your reply. The intention is that I will get the loan and make the repayments and my son will pay me back each month. From the first paragraph of your reply, there appears to be no tax implication. Can you confirm this is correct.
Thanks for your help in this matter.
Expert:  Aston Lawyer replied 10 months ago.

Hi,

Thanks for your reply.

I can confirm that there are no tax implications of you doing what you propose.

I hope this clarifies the position.

Kind Regards

Al

Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10408
Experience: Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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