Income Tax due on Interest Paid in Kind?

Amflis

I am really stumped with this and would be inordinately pleased if someone could help:

If as a member of a club I make a loan to the club but then get discounted membership because of it does this count for income tax - i.e. would to be an interest payment (received in kind) I suppose and so chargeable to income tax? Or am I talking rot?? Could there be any VAT implications for the club or am I on another plant.

Thanks,

trevormax

I wouldn't have thought so as you are not employed by them and they are entitled to charge whatever membership fee they want. You would be liable to tax on any interest payments they make to you. Im not 100% on this however sorry.