Lending a family member money

[Dr_Gonzo]

I'm looking at lending my brother a fairly large some of money (£125k) for about 6 months or so to help with a house purchase. What sort of tax implications would there be for this given that he would be in a position to pay it back in full to me at the end of this year?

Thanks,

The Doctor

[fergywales]

Source of funds would help to answer.

[anonymous-user]

"There may be trouble ahead, but while there's ..... '

[DSLiverpool]

I would buy a part of his hopuse to be sold later on when he has funds, family cash is always a recipe for feuding

[Dr_Gonzo]

fergywales said:

Source of funds would help to answer.

Cash, from the sale of a property.

[Victor McDade]

As long as you don't die before he returns the money then you're fine. If you do die, the sum would come under your total 'estate' and thus there could be inheritance tax implications.

[Goochie]

Does your brother have a wife? If so, what happens when she gets a divorce and claims half the value of the house (including £65k of your money) ?

[fergywales]

Goochie said:

Does your brother have a wife? If so, what happens when she gets a divorce and claims half the value of the house (including £65k of your money) ?

Typical PH, always considering the SWT issue!

[jshell]

fergywales said:

Goochie said:

Does your brother have a wife? If so, what happens when she gets a divorce and claims half the value of the house (including £65k of your money) ?

Typical PH, always considering the SWT issue!

Bred through harsh experience, me fears.

[LeoSayer]

DSLiverpool said:

family cash is always a recipe for feuding

Why can't the brother get a loan from a bank?

[audidoody]

Do you love your brother?

If so, don't do it.

Unless it's a gift and you never want it back.

[audidoody]

Do you love your brother?

If so, don't do it.

Unless it's a gift and you never want it back.

[audidoody]

Do you love your brother?

If so, don't do it.

Unless it's a gift and you never want it back.

[YBTurbo]

Don't you will never see the money again.


I know of a similar story, again two brothers and no money was returned.

[Goochie]

LeoSayer said:

yes:

Why can't the brother get a loan from a bank?

Because the bank are already lending him the maximum they are willing to lend?

[camp freddie]

Don't do it. My in-laws remortgaged their house for one of my sister in-laws to the tune of £140k + a further £40k cash. The business she set-up went bust owing a further £80k to other friends and family. She can't manage the mortgage as she's on minimum wage now, so my in-laws are eroding their limited savings trying to keep the house! I ended up clearing the arrears a few months ago.

I lent £5k to another sister in-law (I have several) two years and have never seen a penny back - despite her having several pay-rises.