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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4972
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Resolved Question:

Hello,
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
hello .. how can I help you
Customer: replied 1 year ago.
Yes, please.Last summer, while my friend from Asia was visiting me in the UK, I asked to borrow him £3k. And last winter, he gave me £4k more and was so kind as to tell me that there was no need to pay him back.
However, as a UK resident, would I need to pay tax for the total amount of £7k that my friend brought into the UK for me?Note: My friend is not a UK resident.
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question. If you friend has given you money and he is so kind not to charge you interest on that money and also does not want you to pay him back,- you don't have to report it on your tax return;- you don't pay tax on this amount There is no tax on either gifts or loans. I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Customer: replied 1 year ago.
Thank you for your kind response.But if one day I have enough money and should insist to pay him back by posting a cheque to him:• Would I need to pay tax on the amount of £7,000 that he brought for me?
• If so, when would be the deadline for me to report it on my tax return?
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply. Even if you were to repay your friend the money he lent you £7,000, there is no tax on it.So you don't have to report anything on your tax return. I hope this is helpful and answers your question.
Customer: replied 1 year ago.
Thank you.If I understand it right, even if I am to repay him the money he lent me £7,000; there is no tax. And the reason is because it is considered a loan??Please correct me if I am wrong.
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.You are correct in your understanding..There is no tax to pay on this amount at any time. If there are no more issues, I will appreciate if you would kindly rate my service/accept the service I have provided before you leave the site, to ensure I get credited for it by Just Answer.
taxadvisor.uk and 2 other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Of course, yes I will.
Many thanks,
Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer.
Best wishes.

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