20k loan to parent, to be repaid when inheritance arrives

T McGibney said:
Newspapers are not a reliable source for tax advice.
Click to expand...
Absolutely and that article does state so at the end about getting professional advice. I think the article was written in a very confusing way and got loans under the new threshold mixed up with the actual question from the reader which was for only a 50K loan. Maybe it's because the rule change is new.
 
Brendan Burgess said:
That Times article is clearly wrong.

Interest-free loans are common.

Brendan
Click to expand...
As far as I know it was your link to the article first that made me aware of the rule change but I can't be certain as I have a subscription to the Times.

New rules on inter-family loans since January 2024

I have not seen this mentioned before https://www.irishtimes.com/your-money/2024/05/05/rules-change-on-interest-free-loans-to-family-members/ since January, new rules have come into force. Critically, these apply not only to new loans after that date but also to any family loan taken out...
www.askaboutmoney.com
 
A loan is a loan and a gift is a gift.

There is no requirement to charge interest on a loan.

Revenue have zero interest (no pun intended) in smaller family loans. The new rules apply to loans up towards the Group A threshold of €335k.

It rarely makes sense to unnecessarily charge interest when it’s taxable at marginal rates in the hands of the lender.
 
You must log in or register to reply here.
Back
Top