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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 6172
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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I am selling my house to my parents, what are the potential

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I am selling my house to my parents, what are the potential tax/legal implications of them lending me money to buy another house?

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

There should be no tax/legal implications for the loan. You need to have a document/statement prepared that clearly states the amount of loan, repayment terms and interest chargeable if any and signed by both parties.

My aim is to give you a professional service. I hope this is helpful and answers your question.

Please remember to rate my service by selecting the 5 stars at the top of the screen before you leave JA today. If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

Customer: replied 1 month ago.
Thanks - is the document/statement just to protect both parties from any questions in the future or is there a legal requirement?
Also, if some of it was to be a gift rather than loan would that change anything? It is only about 65K.

Thank you for your reply.

The document/statement is there to protect both parties and used in the event there is an enquiry by HMRC.

If some of it is a gift then my advice is you have separate documents covering gift and loan.

I hope this is helpful and answers your question.

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