Taxing question !

[drmaxell]

Hello can Ramnik or someone help please help me with this?

I lent my child private money (mortgage), few years ago as capital appreciation loan for house she has lived in as main house. Now they are selling and no CGT is due but they owe me 80% of the capital appreiation. I'm a 40 % tax payer. Do I have to pay tax on this even if it was debt between me and my child?:confused:

[Tax Accountant]

Hello can Ramnik or someone help please help me with this?

I lent my child private money (mortgage), few years ago as capital appreciation loan for house she has lived in as main house. Now they are selling and no CGT is due but they owe me 80% of the capital appreiation. I'm a 40 % tax payer. Do I have to pay tax on this even if it was debt between me and my child?:confused:

It seems that

either:

(1) You had a beneficial interest in the ownership of the property, in which case the proportionate gain belongs to you and is taxed to CGT.

or

(2) You lent money on terms that you would benefit in some way. Normally this is by way of interest but in your case the benefit is geared by reference to increase in the value of the property. It would appear to me that the increase is akin to interest on your loan and would be taxable as such.

I suggest that you should ontain professional advice on the basis of full facts and the exact terms of the loan.

Ramnik