Warning: include() [function.include]: URL file-access is disabled in the server configuration in /usr/home/ms/domains/hurryloan.com/html/answers.php on line 78 Warning: include(http://www.hurryloan.com/rightbar.php) [function.include]: failed to open stream: no suitable wrapper could be found in /usr/home/ms/domains/hurryloan.com/html/answers.php on line 78 Warning: include() [function.include]: Failed opening 'http://www.hurryloan.com/rightbar.php' for inclusion (include_path='.:/usr/local/share/pear') in /usr/home/ms/domains/hurryloan.com/html/answers.php on line 78   Go Back To Search Results Question Do I need to pay tax in UK on a low-interest loan from my mum in India? My mum wants to give me a low interest loan to help me put down a deposit on a house in the UK. She lives in India and I live in the UK. Do I need to pay tax on the loan she gives me? Also, do we need to do it officially and if so what is the process? Is there anywhere I can get detailed information on the Revenue and Customs rules for this? By mouche Posted on 07/05/07 Total Answers -2 Answers- Don't tell anyone where you got your money from.. as far as anyone is concerned it came from under your mattress.. I really cant believe the thumbs downs ! OK! then daftys declare everything to the Government.. Answer by : Mrs G On Date 2007-07-05 03:06:07 No, there is no tax due on a loan from your point of view, although your mother may be liable to tax on the interest you pay her on the loan. She would need to take advice in India about that. It would probably be wise to draw up an agreement between you concerning the loan in order to protect your mother if you don't pay it back. Answer by : fengirl2 On Date 2007-07-05 03:06:38 No. Tax is only payable on earned or unearned income and a loan falls into neither of those categories. Although there is no requirement to do this 'officially', nonetheless it would be sensible to draw up a simple agreement showing the amount lent and how it is to be repaid and keep a record of those repayments as they occur. Remember also that at some future date, HMRC might want to know where the funds came from which is another reason for keeping a written record. As an aside, if the house is to be used for letting purposes, the interest you pay may be tax deductible. Answer by : Tax Chap On Date 2007-07-07 07:41:48   Go Back To Search Results