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New queries, issue 4520

29 September 2015
Issue: 4520 / Categories: Forum & Feedback

Capital idea; Carry forward limits; VAT and e-books; UK/Swiss agreement

Capital idea

 
What are the tax implications of a repayment of capital and interest?
 
About 15 years ago my clients took out a new mortgage. Included in that loan they borrowed an extra £30 000 to lend to the wife’s parents to help them buy a holiday cottage in north Wales. This was done because the clients could obtain a better rate of interest than the parents. The plan was that the parents would pay my clients the additional interest on that capital each month. The capital itself of £30 000 would be repaid when the cottage was sold.
 
The monthly payments continued for the first few years but their frequency slowed and my clients have not received payment to cover the interest for many years. However they have kept...

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