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Personal Loan Between Friends

Posted Fri, 08 Dec 2023 21:13:57 GMT by
Hello, I am living in EU and looking to buy a property in UK. A friend of mine who has property in UK and living partly there and working onDubai is willing to borrow me the money I need to buy the house (around 200K). My questions are: 1) Do I have to pay any money in taxes for this loan? 2) Do I have to register in any authority the loan contract? 3) Can I pay him the money back by giving money to him to our home country in EU in the future? 4) As soon as we make the contract will he be able to send me the money instantly to a UK account from UK account? 5) The property I want to buy will be under my (child ) daughter's name will I have to put her name in the loan contract ? Thank you in advance for your replies. Regards Zlat
HMRC Admin 25 Response
Posted Fri, 15 Dec 2023 09:02:11 GMT by HMRC Admin 25 Response
Hi foreigneruker,
Questions 1 - 4.
There is no requirement for you to notify HMRC that you have obtained a loan, are paying interest on the loan or how you are paying for the loan. We cannot comment on question 5.
Thank you. 

 

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