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Posted Fri, 03 Dec 2021 21:17:00 GMT by Pippi123
Dear HMRC, I am tax resident in the UK. My parents (who live and are tax resident in Italy) would like to help me paying my mortgage in the UK by giving me a long term interest-free loan of £100,000. Can you please help me with the following questions: 1. Is it allowed by UK tax law for parents from abroad to give an interst-free loan to their children? 2.Is there a maximum amount that my parent can lend me like this? 3. Do I need to declare this money to HMRC? 4. Do I have to pay tax on an interest-free loan in the UK? Many thanks for your advice.
Posted Mon, 06 Dec 2021 13:35:25 GMT by HMRC Admin 10
Hi

There are no income tax implications of loaning money to family members interest free, but it may be worth contacting inhertiance tax to see if there are any tax implication there.

www.gov.uk/government/organisations/hm-revenue-customs/contact/probate-and-inheritance-tax-enquiries

Thankyou.

Regards.

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