Do I have tax implications.

[Mrfred]

Hi. Pls can someone assist. I gave my brother £150k to put in his company as a directors loan to purchase assets. The contractual agreement we had was that he would pay me back over 5 years , £5k per month totalling £300k. The contract does not specify the daily interest charged. Q1. At what stage am I liable for tax, if any?
The contract was not honoured and I received £1k per month for the first 12months. The company was dissolved and assets put into a new company. There was a new arrangement where the new contract was with a new MD (not family). Again no specification on daily interest charged. The total contract worth was now for ££288k. Q2. At what stage am I liable for tax. Q3. Would I need a credit licence? If anyone can assist would it be possible to direct me to any legislative websites that can back up what you say. I’m very desperate and don’t know what to do as I’m almost broke. Thanks in advance.

[Sockpuppet]

If you're lending £150k to people you can afford to pay for an accountant

Its too much an involved question for people here to answer.

[centurian]

WHS - this has nothing to do with contracting.

This is a complex situation and should be assessed by a professional accountant.

I’m very desperate and don’t know what to do as I’m almost broke.

Then speak to a professional first thing Tuesday morning - we can't help you with something this big.

Although I have to wonder - if this is so serious, it beggers belief why you thought that a forum of (mostly IT) freelancers would be best placed to answer an extremely complex accountancy question.

[cojak]

And I would advise that you do your own due diligence on any advice given here.

[v8gaz]

Almost worth keeping this one sticky for when the inevitable 'should I invest in my family member's business' question comes up.