Recieving loan from mother in law

leo79

Hi

Can any one advise on the best way of recieving a loan from my wifes mother.
She wants to lend us the £10,000 that we were going to borrow from a bank, but we want to know the best way of going about it.

My accountant has said that a contract between us both detailing the amount borrowed and the amount to be payed back over the term of the loan will be sufficient.

However my mother in law is concerned about tax implications.

Any help will be appreciated,

Thanks

Leo

Apples2

Get it from the Bank.

Neither Lend nor Borrow from Family and friends.... It always ends in tears.

vaporate

Apples2 wrote: »

Get it from the Bank.

Neither Lend nor Borrow from Family and friends.... It always ends in tears.

Agree. Except, try and save this first if possible.

Any borrowing is iffy really.

peterbaker

If yours is a true family who trust in each other and know how to forgive and support each other and pull together in a crisis, then why does there need to be any written contract?

What tax implication is your M-I-L worried about? Who is going to be interested? Just agree how much a month, whether cash or STO, and on what day each month you are to pay it back and make sure you stick to it through thick and thin that's all. It's a kind of test of course. Are you up for it?

Conversely, if you think your ability to pay back £10,000 is likely to fall flat on its face in the next few months then do not insult your M-I-L by suggesting otherwise - in that case maybe the bank would be best because unlike M-I-L's, they have tried and tested ways of dealing with defaulters, and they have their price set from the outset.

PNPSUKNET

She will need to declare any intrest that is made