Interest Free loan from Parent

[coolhandluke]

My Father is prepared to give me an interest free loan of 80k over 8 years, so I can purchase a house with my wife.

Obviously to cover himself he is looking for something in writing just between ourselves like X per month over Y years which is no problem, if I include my wife in the document is there an issue as she is only an in-law in terms of gift tax ?

My wife is also bringing a substantial sum to the purchase, and there is no bank involved.

 

[Joe_90]

Interest free loans are subject to Capital Acquisitions Tax based on the notional interest. But as the first €3,000 of gifts from a person is exempt if this is the only gift you get each year then there is no issue.

As the loan itself is repayable it is not a gift in itself so there is no gift to your wife so no issue including her.