Tax change to see clampdown on bank of Mum and Dad

Finance Bill set to increase taxable benefit on interest-free loans used to help buy homes

Family ties: the value of a loan between parent and child is a taxable benefit. Photograph: iStock/Getty

Family ties: the value of a loan between parent and child is a taxable benefit. Photograph: iStock/Getty

Parents may think twice about offering an interest-free loan to their offspring to fund a house purchase or renovation from January 2022, following a move in the recent Finance Bill.

The proposal means that loans within a family on which no interest is charged will be treated as a greater taxable benefit; this benefit will also become more complex to calculate. In addition, the amendment may affect families that already have such arrangements in place.

The Irish Times
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