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Tax on income from friend to clear debt

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Comments

  • colsten
    colsten Posts: 17,596 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    Short answer: No. 
    Unless the payment includes interest. 
    In which case, only the interest would count as taxable income, or as capital gain. Seems academic though as it appears that the loan was interest-free.
  • redpete
    redpete Posts: 4,764 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    If you or he believe he is making ongoing profits playing online slots you are fooling yourselves, or he is exploiting a flaw in the in-built house advantage which is very unlikely.
    loose does not rhyme with choose but lose does and is the word you meant to write.
  • Voyager2002
    Voyager2002 Posts: 16,349 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    You should ensure that you can document both the loan and that you are now receiving repayments of the loan. HMRC may well be interested in the payments into your account and ask for details.
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