Tax on interest-free loan from Panama company?

Is an interest-free loan from a Panama company to a UK resident taxable?

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Would an interest-free loan from a Panama company to a UK resident individual have any taxable implications on him/her?

The company has no place of business in the UK. The borrower would be a family member of the owner of the company.

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By Paul Crowley
09th Jun 2024 15:11

The accountant and the bank should be concerned with AML first.

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By FactChecker
09th Jun 2024 18:38

"Would an interest-free loan from a Panama company to a UK resident individual have any taxable implications on him/her?
The company has no place of business in the UK. The borrower would be a family member of the owner of the company."

Q1: Is it really an "interest-free *loan*" (with detailed repayment terms)?
Q2: What, if any, security will your client have to put up against the loan?

As Paul has suggested, answers to those may have quite an impact on banks allowing the transfer of monies ... BEFORE your main question is addressed.

One other point ... whether or not any such transfer would have "taxable implications on him/her" is dependent on a number of things about that individual to which we're not privy. If the transfer is likely to proceed, get some professional advice.

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By ireallyshouldknowthisbut
10th Jun 2024 09:46

Your AML file is going to need to be a bit more than "my client said"

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