Family loan to purchase property

Can interest be charged without a licence?

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A family member has provided a loan of around £50k to assist with the purchase of a property.  The property will be owned by a husband and wife who have a portfolio (5 or 6) of rental properties.  

Do they need a consumer credit licence to charge interest on this loan?  Is there a mechanism to deduct income tax at source or is it something they simply declare on their tax return?

Thanks

 

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By David Ex
11th Oct 2021 15:49

SDGREEN wrote:

Do they need a consumer credit licence to charge interest on this loan? 

No.

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By Justin Bryant
11th Oct 2021 15:58

Last time I looked only companies potentially had to withhold via CT61s.

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By Hugo Fair
11th Oct 2021 16:32

Is it wise to borrow money through unofficial channels (especially where family is involved alongside skimpier than usual contract documentation) would have been an interesting question ... but No, No and Yes will have to suffice for now.

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