Lending Tax

[aeromint21@rock.com]

I half own a house with my uncle, I moved out and away 10 years ago into my own property when I got married, he now wants to sell up and move to a bungalow, the house is valued at 250000, and the bungalow he wants is 200000, he has asked be to lend him the difference, and then when the bungalow is sold (If he passes away or goes to a retirement home/nursing) I get back the lend, I am concerned that when the bungalow is eventually sold that the lend may be considered for IHT/capital gains even if an agreement is written with a solicitor, I now that I would not inherit from the sale of the bungalow, but I would expect to get my lend back, how would the tax man view this?

[Simon Sweetman]

First of all, when the current house is sold you will have to pay CGT on your share of it (your uncle will not pay on his share as he lives there). That may alter the figures.

If you lend him £50,000 and are repaid the same amount when the property is sold, that has no tax consequences at all.

[aeromint21@rock.com]

thanks