Personal Loan from an overseas company

by **Vipul** on Thu Jan 05, 2012 8:29 pm

Hello there,

A quick question - can a UK resident (and UK Citizen) get a loan from an overseas company? The money will be received in the UK and used to meet personal expenses. What are the income tax implications in the UK for that individual? The terms of the loan could be to pay a simple interest (of course favourable to the UK individual) and be expected to repay, say in 10 years time.

Is that possible at all?

by **maths** on Thu Jan 05, 2012 11:35 pm

In principle such is possible.

However the UK tax consequences will depend upon the facts:

1. do you or family members own shares in the company.
2. are any trusts involved.
3. is the loan denominated in £ or another currency.
4. is the loan to be secured on UK property.

by **Vipul** on Fri Jan 06, 2012 12:06 am

1) Mother in law has shares.
2) No trust involved.
3) in usd, but will be converted in gbp for use in the UK.
4) unsecured loan.
Many thanks for your help.