Bank of mum and dad

S

settlement

Registered User
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275
I note a recent kerfuffle in the media about children being taxed if they receive interest free loan from parent.

It seems this has been kicked to touch. But I can't really get to grips with current status.

Let's say my mother loans me 40k. How do I 'prove' this is not a gift, and how do I avoid paying tax on it?
 
What did you get the "gift loan" for? After answering that, you'll have a paper trail to prove it. Then, you'll pay it back which will have another paper trail. There's no "Bertie 2" allowed.
 
settlement said:
Are legal personnel necessary?
Click to expand...
It depends on whether your knowledge is sufficient to draft a loan agreement... most people probably don't have sufficient knowledge to draft a document that would be acceptable to the Revenue.
 
I’m going the other way, giving loan of €200k to the parents to help them repay some maturing debt. Loan agreement drawn up, interest rate on loan is currently zero as you’d get zero if you put €200k on deposit with BOI / AIB. Monthly loan repayments in place.
 
They're putting it out there to see what negative reaction there might be. Depending on what results from such intellectual research , they'll act, or not. Would Paschal and the Goverment do this? Bet your bloody life they would.
Unless of course they say that it's a revenue matter and nothing to do with party politics/Goverment.
 
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