More family loan stuff

[microsquid]

OK, I've surfed the collective wisdom of AAM but I still need a few pointers, folks.
I'm hoping to furnish a loan to a friend of approx 4k Stg.
I've checked out previous posts, esp. , and expect to follow the advice about having everything as clear as crystal but I still have some more questions specific to my situation

• Is the gift tax etc. exemption only valid to family members? (I know threshold limits drop off v. quickly with blood links).

• Where and how would be the best way of doing this to minimise the FX sting? Being honest I was thinking of leaving the money in sterling and taking advantage of those lovely interest rates over, although that'll take some handling with opening the bank account etc. I figure it might be the best way of doing things. (Obviously making sure all interest etc. declared, we're not talking offshore shenanigans)

Thoughts? Advice?

 

[WizardDr]

How would a loan be a gift?
Translate the amount of sterling to euros and use the euro amount as your starting position.
Make that clear to the friend.