Loan to adult son to purchase a home

Hi I am considering making a loan to my adult ason to enable him to buy his own home. I intend taking a charge on the home. Essentially it will be a mortgage from me. At least for the initial period, the interest on the loan will be deferred as he is unlikely to be in a position to pay it. This gives rise to the follwing questions: 1. Am I correct in thinking that I only need to declare the interest income when I actually receive it? and not on an arising basis? 2. I can choose the interest rate ranging from 0 to the current variable mortgage interest rate? 3. What is the tax consequene if I finally end up forgiving the interest - essentially making it an interest free loan. Does it mean that there is nothing to be declared on my tax return. Thanks. I am grateful for your clarification.

Hi,

You will need to contact our Income Tax team to answer this as more information is required.

Income Tax: general enquiries

Thank you.