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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4532
Experience:  FCCA FCMA CGMA ACIS
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I have an interest free loan that I have used to purchase a

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I have an interest free loan that I have used to purchase a property. I have been told by the organisation that lent me the money the following "you will have personal tax to pay in relation to the benefit in kind of receiving an interest free loan" and "The amount of tax due is dependent on and HMRC’s official interest rate (currently 3%) and your personal rate of tax, however your personal tax advisor will be able to advise you on this". I don't currently have a tax advisor and I'd like to understand how this tax will be calculated so as I can work out how much this loan is going to cost me in terms of tax I will need to pay.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

I have never heard such tosh in all my professional life. You are not employed by the lender so no benefit in kind is involved. There is no tax due to HMRC on moneys loaned out gratis of interest.

I do hope that you have been able to set your mind at rest on this matter.

Customer: replied 1 month ago.
The organisation is an offshore trust that I am a beneficiary of and they said in a separate email that it was due to changes in the "Financial Bill 2017". I hope your right but I'm suspicious of why they would tell me it about it but they are obviously not accountants.

More balderdash an piffle.

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Thank you for your support.