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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am lending my daughter and partner 69k outright cash purchase

Resolved Question:

I am lending my daughter and partner 69k outright cash purchase for small house in NW England. I would like the property to be in their names. I will be liable for tax on repayment of loan however I would like to ensure that HMRC treat this as a loan and not a gift as far as my daughter and partner are concerned. I planned to ask solicitor to draw up agreement between us re the loan would this be sufficent or can you offer any other suggestions.
many thanks
Submitted: 3 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 3 years ago.
Hello and welcome to the site. Thank you for your question.

An agreement between the parties clearing stating that the amount advanced is a loan and not a gift and also stipulating terms of repayment and interest chargeable would be sufficient for tax purposes.

if there is no interest payable, clearly state that it is interest free loan. You would be liable to income tax on only any interest received and not repayment of initial sum advanced.

I hope this is helpful and answers your question.


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Expert:  taxadvisor.uk replied 3 years ago.
I thank you for accepting my answer.

Best wishes.