Tax implications of personal family loan

[PaulMc]

I have been offered a personal loan from my Aunt for €140,000 to enable me to purchase a house with an agreed payback term over a number of years.

She is worried about tax implications of this - can you advise. Can I draw up a loan agreement and what would be the tax implications of doing that for her and me?

She was also thinking of giving me €50,000 of this in lieu of an inheritance to me on her death.

I think there is a threshold of €30,000 that is tax free for a gift? what would be the tax implications of this for me?

 

[rob oyle]

There's a number of similar queries re: family loans on here already, I think they were pretty well covered off.

As for the second part, your aunt would meet the criteria for Group B, so the tax free element would be €30,150. Quick tax calculation, assuming no previous receipts: (€50k - €30,150) * 33% = CAT liability of c.€6.5k.

 

[john luc]

Thinking out load here but a thought came to me that if you agreed to say pay back €3000 per annum and then your aunt gifted you back the €3000 then would no tax arise. The total value of the loan then would be declining by £3000 per calender year.