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Category: Tax
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If I loan a friend some money (£10,000) am I liable

Customer Question

If I loan a friend some money (£10,000) am I liable for tax on the repayment?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.
No, loans and their repayment are outside the scope of UK taxation.
However, any interest paid by your friend to you on the loan, will be liable to UK Income Tax in your hands and must be declared on your Annual Self Assessment Tax Return.
I do hope I have helped set your mind at rest on this matter.