Money from friends

Hi, I live in Uk and have a house here with a mortgage to pay off. My friend from Poland would like to borrow me money to pay it off (money transfer from Poland to UK). My friend would be in the position to transfer 100k to my account and I would pay the mortgage off straight away. Depending on our terms I would be paying him that money off probably on monthly basic(no more than 1k per month). Do I need to inform anyone on this, do I need to pay any tax?

Hi,

There are no Income Tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends. These would then potentially be subject to tax. You can see further guidance here:

Tax on savings interest

Tax on dividends

You do not need to inform HMRC but you may want to advise your bank regarding the gift.

No relief is due on paying the money back

Thank you.