Loan to parent

[jim]

Hi,

Myself and my siblings are loaning our mother various sums to help her with a sudden large bill.

The amounts are 20+20+8+5+5+5 = €63k from 6 different individuals.

Our mother will be paying it all back in about 1 year and no interest will be charged.

Are there any tax implications for her or for us? or can this just be an informal arrangement whereby we just transfer the sums to her account.

Thanks,
Jim

 

[RedOnion]

It's not a gift, but a loan.
Technically speaking the 'interest' on that loan is a gift (assuming you're not actually charging her interest!). But it's under 3k per person, so there's no tax implications if there are no other gifts in the year.

It might be best to have a note explaining that all parties understand it's a loan to avoid any complications if anything unexpected happens.

 

[jim]

Great thanks very much redonion, that makes sense