I have a client with an odd arrangement.
The client is due to purchase a property in his name.
2 friends are lending him money to do so.
The loans are to be repaid over time with no interest.
BUT on sale of the property, the 2 friends get a slice of the house sale price.
So it seems to me this is simply rolled up interest, and so a (big) income tax receipt, once it arrives in their bank account.
Any smart ways to strucutre this so its CGT, other than the obvious one that they just buy a share and get some sort of rent/loan interest.
I am musing around whether a bare trust can be used such that the friends have a nil acquisition cost for their share of the property, and so any proceeds are capital proceeds of the trust, and not rolled up interest on the loan.