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Where Taxpayers and Advisers Meet

Lending money to adult daughter

NickPrice
Posts:38
Joined:Fri Sep 11, 2015 12:39 am
Lending money to adult daughter

Postby NickPrice » Mon Mar 08, 2021 7:58 pm

I'm in the process of selling a property and since my daughter cannot get a mortgage, I was wondering whether there is a tax implication in me lending her all the proceeds of sale, so that she can buy a house? She would pay me back only the principal not with any added interest.

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Lending money to adult daughter

Postby pawncob » Tue Mar 09, 2021 12:11 pm

No tax implications. (Keep enough back to pay the CGT)
With a pinch of salt take what I say, but don't exceed your RDA

Jholm
Posts:360
Joined:Mon Mar 11, 2019 4:22 pm

Re: Lending money to adult daughter

Postby Jholm » Tue Mar 23, 2021 2:00 pm

Assuming your property sale is taxable (your query suggests you have multiple so I imagine it is likely), bear in mind CGT as stated by pawncob.

Also consider that as of April 2020, any disposal of UK residential property that gives rise to tax must be reported to HMRC within 30 days, with the relevant tax paid.


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