Tax on interest from a loan to another person?

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.

Dave Vanian said:

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?

Click to expand...

Income tax, 4% PRSI and USC

Dave Vanian said:

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

Click to expand...

Irrelevant outside an employer to employee loan.