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Posted Mon, 29 Jan 2024 10:58:05 GMT by
In 1988 I gave my parents a loan to enable them to buy their home. It was registered as a charge on the property with the interest rate effectively zero (0.01%) and the principle sum defined as 28% of the disposal value. On the charge I am listed as the lender, my parents as the borrower, and I do not appear on the deeds. The loan was due for repayment in 2007, but by this time both parents were disabled and I felt unable to force them to sell. The property is now to be sold and I will be paid out of the proceeds. 1.) How will this be teated as I assume the loan repayment will attract CGT? 2.) How soon after completion must I notify HMRC and pay? 3.) What form do I use? Can it be done online? I don't normally make tax returns as my income is below the personal allowance.
Posted Wed, 31 Jan 2024 18:41:19 GMT by HMRC Admin 25
Hi Jimmy Obrien,
As it is a loan, it is only any interest that you receive on this that is taxable.
As you are not the owner of the property, it is not liable to capital gains. if interest has been paid, it forms part of your personal savings allowance and you would need to report this in writing.
Thank you. 

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