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Loan from family member

  • 20-05-2015 12:51pm
    #1
    tuisginideach
    Registered Users, Registered Users 2 Posts: 2,101 ✭✭✭


    Query answered satisfactorily, thanks


Comments

  • #2
    CIARAN_BOYLE
    Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    tuisginideach wrote: »
    Can a sibling give me a large loan without any tax implications for either of us? It would be a loan, not a gift.

    They would have to declare interest to revenue and pay tax on it. If no interest is charged they would have to declare interest to revenue and pay tax on it while you would be receiving a gift of the interest subject to CAT at your rate.


  • #3
    tuisginideach
    Registered Users, Registered Users 2 Posts: 2,101 ✭✭✭tuisginideach


    Many thanks! You have answered my question perfectly - that's all I need to know.


  • #4
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,685 ✭✭✭barneystinson


    CIARAN_BOYLE wrote: »
    They would have to declare interest to revenue and pay tax on it. If no interest is charged they would have to declare interest to revenue and pay tax on it while you would be receiving a gift of the interest subject to CAT at your rate.

    How can they have to declare an interest income that they don't actually have?


  • #5
    CIARAN_BOYLE
    Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    barneystinson wrote: »
    How can they have to declare an interest income that they don't actually have?

    they have to deem a rate of interest, I'm not sure if its based on the deposit rate they could have gotten or the loan interest the other party would have to take. Its one or the other.


  • #6
    Geniass
    Closed Accounts Posts: 643 ✭✭✭Geniass


    CIARAN_BOYLE wrote: »
    they have to deem a rate of interest, I'm not sure if its based on the deposit rate they could have gotten or the loan interest the other party would have to take. Its one or the other.

    Revenue have an expected interest, below which is considered a preferential rate. The full deemed rate is what tax would be paid on.


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  • #7
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,685 ✭✭✭barneystinson


    Lads what are ye on about?!

    Ye seem to be talking about BIK rules around preferential loans to employees.

    There is no provision that deems a person to have received an interest income from e.g. a family member on a loan.

    There is a gift of the difference between the interest received (zero) and the rate it would attract on deposit, but that's a CAT issue.

    From an income tax perspective it's nothing to see here.


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