Bank of Mum and Dad lending issues
14th June 2017
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Here are just a few of the potential issues;-

1  is the payment a loan or a gift ?

2  if there is no written agreement , there  may be a dispute about repayment   

3 if the loan is made to a couple , it may not get repaid if the relationship ends 

4 the loan will rank behind a commercial mortgage in terms of repayment 

5 income tax may be payable on any interest charged 

6 Capital Gains Tax pay be payable if the loan is made on the basis of taking a share in the property 

7 if the loan is not repaid , the loan will be an asset of the estate  for Inheritance Tax

If you require any further information , please contact John Buckle on 01922 707598  

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