IHT and Loans

[Jason123456]

If a loan is made when does it become IHT liable,to the person making the loan?

If a loan is repaid say,after 3 or 4 years,what is the position wrt IHT?

[AGoodman]

Simply making a loan is not a chargeable event.

If the lender dies, it will be an asset in their estate.
If the borrower dies, it is only deductible if it will be repaid.

[Jason123456]

So,..it becomes a chargeable event if the person making the loan dies before the loan is repaid?

[maths]

The loan is an asset of the lender.

If the lender died before any part of the loan was repaid it would be an asset of his estate and thus liable to IHT on death.

[Jason123456]

Thank you both for your help!