I am currently considering whether to loan a family member £90,000, I have already drawn up contracts and agreed interest rates and security however I have no idea what the tax implications would be for me on receiving the monthly repayments.
Will I have to pay tax on each repayment (capital and interest) or only on the interest portion?
Only on the interest portion.
In message , snipped-for-privacy@talk21.com writes
Only the interest.
In message , snipped-for-privacy@talk21.com writes
You definitely dont pay tax on the capital repaid. The interest is income, and therefore taxable.
Of course.
But unless the contract goes into enough detail to be able to determine how much of each paymnent is interest and how much is return of capital, how would it all be assessed?
In message , Ronald Raygun writes
By the same method, how would the monthly payments be assessed? The original poster that the terms had been agreed though.
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