Cash Loan from Parents

K

Kate121

Guest
What are the implications for both myself and my Husband and his parents if we were to receive a cash loan of 50000 for 2 years from them ???
 
No implications if the loan is at market rates. Otherwise you could impute a small gift of interest on the money which is unlikely to be above any tax thresholds unless you have both received substantial gifts or inheritances in the past.
 
Vanilla said:
No implications if the loan is at market rates. Otherwise you could impute a small gift of interest on the money which is unlikely to be above any tax thresholds unless you have both received substantial gifts or inheritances in the past.
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is this not in breach of the moneylending act ?

Has this law changed since i last was at the lawyers office, i had wanted to sell a house i have to my tennant and charge the prevaling rate ?
i was advised that this could not be done,this was a few years ago.
 
I'm sorry- I didnt see the reference to implications for the parents in this transaction- certainly income tax would need to be looked at.

However, I don't believe they would be classed as money lenders- as long as the rate is below 23% ( which presumably it would be), so they would not need a licence.
 
Also presumably the interest paid would be less than the threshold for gift tax so there should be no implications for either the giver or the receiver.

A threshold of 46,673 euro applies to gifts/inheritances made by a person to his/her parent
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From Oasis

So as long as the interest doesn't exceed that, I don't see a problem.

-Rd
 
daltonr said:
Also presumably the interest paid would be less than the threshold for gift tax so there should be no implications for either the giver or the receiver.


From Oasis

So as long as the interest doesn't exceed that, I don't see a problem.

-Rd
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Maybe not, but it's worth pointing out that any imputed gift would count towards the individual's (either the parents or the child's) lifetime (i.e. the limit is not annual) CAT exemption limits.
 
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