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| *Loan,banking and credit>>>tax accounting |
Mum (Australian) owes me 拢15,000 if she pays it back into my account here in UK will I have to pay tax? |
I want to buy a flat with the money she owes, but if tax is taken out, I really won't have much. Any advice? Repayment of a debt is not classed as income, but any interest charge on the debt is. Tax would be payable on the interest only. Since the 拢15K is effectively your money to begin with (or how could you have lent it?) it cannot be either income or taxable Nope you won't.....although you would be liable to pay inheritance tax on this amount should you die within 7 years of receiving this money [this would not be paid by you of course as you would be dead but would be liable on your estate should it be above the threshold limit].... Also - given new money laundering directives....such a large teansfer might [and I only say might] raise a few queries from the authorities....it probably won't....but money coming in from abroad could do....there again you will have nothing to hide if it does... Nope! It was a loan from you to her and now she is paying it back - the only exception would be if she paid you back with interest - then I think you would have to pay on the interest only! I think the money you expect your mum to pay you is an income. Except otherwise stated by Tax laws of your country, all incomes are subject to personal income tax. Therefore, you will be expected to pay tax. However, the amount that may be deducted cannot affect your decision to buy a flat. Robbo31 is not correct about IHT. You will not have to pay that in any event unless your total estate is about 拢300000. No tax liability. no that was easy |
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