Is a private loan liable only if interest is charged

Monsoon

Registered User
Messages
79
Hi

If A gives B a private loan of 130,000 for 6 years. Is there any tax implication for either party. It is a loan from a friend - not employer and not related.

From my searches here I think that if it is interest free there is no tax due but if A charges B the interest on the loan then there is a tax issue - is this correct and if so how is this calculated?

Many thanks
 
Back
Top