Interest free loan

[settlement]

Hi,

Can I give a sibling an interest free loan? Eg 15k euro.

If so, what documentation would I require?

 

[cremeegg]

Yes you can. The interest not charged would be seen as a gift for tax purposes, but you can gift someone up to €3k a year without any tax consequences, that would cover the interest.

Strictly speaking you do not need any documentation, but it would be wise to draw up a loan agreement , for two reasons. To confirm for tax purposes that the €15k is a loan and not a gift, and to ensure that both you and your sibling have the same understanding of the terms of the loan.

Nothing complicated needed, I don't see why you would need a solicitor, just write down what you intend for the loan, two copies two signatures on each.

 

[settlement]

Yes you can. The interest not charged would be seen as a gift for tax purposes, but you can gift someone up to €3k a year without any tax consequences, that would cover the interest.

Strictly speaking you do not need any documentation, but it would be wise to draw up a loan agreement , for two reasons. To confirm for tax purposes that the €15k is a loan and not a gift, and to ensure that both you and your sibling have the same understanding of the terms of the loan.

Nothing complicated needed, I don't see why you would need a solicitor, just write down what you intend for the loan, two copies two signatures on each.

Thanks. I'll google some of the specific about how to word it etc. Is there any specific way of proving the date it was drafted? Eg if revenue took issue in theory I could just write it up and back date it