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Loan of mother to buy house.. Tax??
Hi Folks,
Basically my mother is in the position to both give me 50k for a house, and another 50k as a loan, rather than getting a mortgage. She is planning on moving to Spain and therefore is using money from sale of the house in England to lend me. Couple of things, would we have to pay tax on this loan as it is a family loan? And is there anything else I should take note of? As she is moving to Spain the repayments of the loan in a mortgage format would be going straight to her bank account in spain, would this affect the deal? Thanks
Basically my mother is in the position to both give me 50k for a house, and another 50k as a loan, rather than getting a mortgage. She is planning on moving to Spain and therefore is using money from sale of the house in England to lend me. Couple of things, would we have to pay tax on this loan as it is a family loan? And is there anything else I should take note of? As she is moving to Spain the repayments of the loan in a mortgage format would be going straight to her bank account in spain, would this affect the deal? Thanks
0
Comments
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No tax for you to pay, but there may be for her if you are paying her interest on the loan component.
Inheritance tax may be an issue later, but assuming she stays in Spain that would fall under Spanish taxation rules, of which I have no knowledge, so specialist payed for advice may be in order here.0
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