The issue for the Revenue Commissioners is clear: they are not there to police loans, but there is very precise legislation that governs the taxation of gifts and inheritances. As most people will know by now, there are tax-free lifetime thresholds governing such gifts and inheritances. These range from the relatively generous €335,000 for children receiving from their parents down to a far more modest €16,250 for gifts or inheritances between people who have no direct blood lineage.
If someone is looking to borrow the sort of sum you are talking about, the natural first recourse would be to a mainstream lender. Very few people, even if they thought of it, would have friends with that sort of ready money to hand. Interest rates are also a factor here. The best rate you’ll get on a personal loan from an Irish lender right now is 4.9 per cent at An Post. More commonly it is around 6 per cent, rising as high as 8.95 per cent with AIB for a home improvement loan, according to price comparison website Bonkers.ie. And in some cases these are variable rates that could rise further as the European Central Bank continues to raise its rates.
That example is simply for comparison. With the sort of loan you are talking about, there do not have to be monthly payments. You could decide between you to organise payments on some class of regular basis – weekly, fortnightly, monthly or even annually – or you could work on the basis of random repayments. You could even simply agree that the money will be repaid as a lump sum at some later point with no interim repayments.
You can do whatever you want. Screw the revenue. How would they know anyway.
You can do whatever you want. Screw the revenue. How would they know anyway.
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Source: IrishTimes - 🏆 3. / 98 Read more »
Source: IrishTimes - 🏆 3. / 98 Read more »