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capital gains tax

Smokeyone
Smokeyone Posts: 155 Forumite
Part of the Furniture 10 Posts Combo Breaker
edited 18 June 2009 at 3:04PM in Cutting tax
I invested some money with a friend several years ago and then some more a year or so later and in the next month or so it is going to be repaid
with a generous profit. I am happy to pay the tax on it (well not really but you know what I mean) but if I invested the profit with another friend does that mean I would have no tax to pay this time round. Both friends use the money for property speculation.

Comments

  • fengirl_2
    fengirl_2 Posts: 4,530 Forumite
    Not enough information here. Were you a shareholder in their company? What was the agreement on the money - was it a loan? Was interest paid?
    £705,000 raised by client groups in the past 18 mths :beer:
  • SeniorSam
    SeniorSam Posts: 1,674 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Smokeyone wrote: »
    I invested some money with a friend several years ago and then some more a year or so later and in the next month or so it is going to be repaid
    with a generous profit. I am happy to pay the tax on it (well not really but you know what I mean) but if I invested the profit with another friend does that mean I would have no tax to pay this time round. Both friends use the money for property speculation.



    ........ if you simply made a 'Loan' of the money to your friend and he is simply 'repaying' the loan to you and making you a 'Gift', it puts a different light on this senario........... no tax involvement.


    Sam
    I'm a retired IFA who specialised for many years in Inheritance Tax, Wills and Trusts. I cannot offer advice now, but my comments here and on Legal Beagles as Sam101 are just meant to be helpful. Do ask questions from the Members who are here to help.
  • Smokeyone
    Smokeyone Posts: 155 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    It wasn't to a company - just to a private individual but a friendly solicitor said get something in writing so I have a note saying that the money will be repaid on such a such date at a interest rate of such and such. The solicitor also told me that if it went pear shaped even with a letter there was not a lot I could do about it. As they had loads of expenses with their property investments I assume I was put down as an expense with the interest payment.
  • fengirl_2
    fengirl_2 Posts: 4,530 Forumite
    It looks as if you will be liable to tax on the interest received on the loan.
    £705,000 raised by client groups in the past 18 mths :beer:
This discussion has been closed.
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