Worried about a loan from my parents

AyeReady1985

To explain I have a trust deed which is due to finish shortly. I cannot get credit for a loan. 

My parents took out a loan and gave me 6.5k to buy a car. I require a car for my disabled son and there is no way we can survive without one.

My wife said we may have declare this for tax purposes. This never crossed my mind and we are paying it back at a fixed amount each month to my folks.

Should I be worried about this? If I need to declare this how do I do it?

Any help appreciated. 

Thanks 

 

zagfles

You don't have to declare receiving a loan for tax purposes. If you're claiming means tested benefits you may need to declare it to the benefits people. If you're paying your parents interest on the loan they may need to declare the interest for tax purposes.

sourcrates

Just carry on with your life and don`t worry about it, its not an issue.

General_Grant

AyeReady1985 said:

To explain I have a trust deed which is due to finish shortly. I cannot get credit for a loan. 

My parents took out a loan and gave me 6.5k to buy a car. I require a car for my disabled son and there is no way we can survive without one.

My wife said we may have declare this for tax purposes. No - the tax people (HMRC) would not care about any loan in relation to your own affairs.  If you are simply repaying it without paying anything in addition (eg interest over and above what it is costing them), then your parents don't have to be concerned re tax.  This never crossed my mind and we are paying it back at a fixed amount each month to my folks.

Should I be worried about this? No.  If I need to declare this how do I do it?  Nothing to declare.

Any help appreciated. 

Thanks 

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