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There are two taxes to consider here, Income Tax (IT) and Capital Gains Tax (CGT). What you are doing is effectively making your friend a loan. That and its repayment are outside the scope of IT unless interest in involved in the repayment. However, when the property is oeventually restored to your friend you will be liable for CGT on the notional gain made on the transaction less your non-cumulative Annual Exempt Amount, currently 12K.