Tax Or No Tax

fitterastra

Hi,

My mom helped me pay the mortgage on my first house for two years, now i have just remortgaged and have borrowed more money to pay her back all that i owe roughly £8000.

She will not gain anything just have all her money back.

Will she have to pay tax????????????????????????????????

CIS

you would onll pay tax on th money if she declared it to the IR as income, otherwise its just a personal deal. She may tax on any money in the bank though.

telly-addict

But she wouldn't declare it as income as it sounds like you have just repaid the capital that you borrowed from her, on an interest-free basis? So no tax implications.

Obviously tax on the interest once she re-invests it, but usually paid net any way.