Lending money to relatives - tax implications

[lfcjfc]

The in-laws are planning to relocate to Ireland from the UK. They have sold their house in the UK and the deal is going through. In the meantime, they have found a house here in Ireland and paid a deposit. They need to complete the deal on the Irish house now or risk losing it. However, the proceeds from their UK sale are not available yet. If I lend them ~€200k for the short-term to complete he deal, are there adverse tax implications for me when they repay the loan and €200k reappears in my bank account.
Any other advice that people can offer on such a transaction would also be appreciated.

Thanks.

 

[extopia]

Don't think you have anything to worry about. If you charge them interest there would be tax implications for the interest income though.

I'd make sure you draw up a proper loan agreement. Talk to your solicitor.

 

[ubiquitous]

Unless the money is currently held in the name of a company, or there is some other complicating factor, there should be no tax implications, except as stated above in relation to any interest charged, which would be taxable.

Bear in mind that in the current climate, the anti-money laundering people may look closely at the transactions but unless you have a skeleton in the cupboard this should not worry you.