Tax on interest from a loan to another person?

[Dave Vanian]

If Person A gives Person B a loan to buy a house and Person B pays interest on that loan at a rate of 4% or more (so that it's not seen as a preferential loan by Revenue), what are the tax implications for the recipient of the interest?

Income Tax? PRSI - at what class? USC? Any other taxes?

Does Person B need to deduct and remit any withholding tax on the interest before paying it?

Anyone got a link to definitive information on this?

Thanks.

 

[T McGibney]

If Person A gives Person B a loan to buy a house and Person B pays interest on that loan at a rate of 4% or more (so that it's not seen as a preferential loan by Revenue), what are the tax implications for the recipient of the interest?

Income Tax? PRSI - at what class? USC? Any other taxes?

Income tax, 4% PRSI and USC

(so that it's not seen as a preferential loan by Revenue),

Irrelevant outside an employer to employee loan.