{"id":820,"date":"2019-08-27T06:49:49","date_gmt":"2019-08-27T04:49:49","guid":{"rendered":"https:\/\/vwg.nl\/uncategorized\/9-rente-op-familielening-is-niet-zakelijk\/"},"modified":"2026-03-03T10:33:36","modified_gmt":"2026-03-03T09:33:36","slug":"9-interest-on-a-family-loan-is-not-a-business-expense","status":"publish","type":"post","link":"https:\/\/vwg.nl\/en\/9-rente-op-familielening-is-niet-zakelijk\/","title":{"rendered":"9%: Interest on a family loan is not a business expense"},"content":{"rendered":"

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An interest rate of 9% on a family loan, taken out in 2015, is Court of Appeal of The Hague<\/a> too high. The Tax and Customs Administration has correctly set the (business) interest rate at 4.5%.<\/p>\n

Family loan<\/h4>\n

A family loan is a loan granted by parents to a child to (partially) finance that child\u2019s own home. If the loan meets the conditions, the child can claim the interest as home ownership interest. The child will thus receive a refund of part of the interest paid from the tax authorities. Depending on other income, this could amount to 52% of the interest paid in 2015. Interest of 9% would then result in a net cost, after tax, of just 4,32%<\/strong>.<\/p>\n

The parents\u2019 claim is taxed as income from savings and investments (Box 3). This means that it is not the interest actually received by the child that is taxed. Instead, the income in Box 3 is determined on a flat-rate basis. In 2015, the return in Box 3 amounted to 4%, on which 30% tax was payable, representing a tax burden of 1.2% of the claim. As a result, of the 9% interest received, the parents are left with no less than 7,8%<\/strong> about.<\/p>\n

Business interest rates<\/h4>\n

It goes without saying that the tax benefit is a reason to set the interest rate on the high side. After all, the higher the interest rate, the greater the nominal tax benefit. The fact that the child faces a substantial interest charge can be resolved by the parents making an annual gift to the child. Gift tax (10%) is only payable if and to the extent that the total value of gifts made in a calendar year exceeds the exemption threshold of just over \u20ac5,000.<\/p>\n

The Court finds that documents submitted by the Tax and Customs Administration show that the average mortgage interest rate for owner-occupied properties at the time the family loan was taken out (2015) was 3% for a loan secured by a mortgage with a 15-year fixed-rate period. The Court also finds that a range of approximately 3% was customary for determining the mortgage interest rate. Based on this information, the interest rate therefore lies between 1.5% and 4.5%.<\/p>\n

The (much) higher interest rate of 9% is justified by the parents and the child on the grounds that the child has not provided any security. However, whilst the Tax and Customs Administration argues that the child is unable to pay the interest and repayments, it is argued that there is no risk of the child encountering payment difficulties. No other explanation is given for the fact that no security was provided. The court therefore concludes that, under the given circumstances, the loan was granted solely on the basis of the family relationship. The child\u2019s income tax assessment therefore rightly takes into account only 4.5% interest on the family loan.<\/p>\n

 <\/p>","protected":false},"excerpt":{"rendered":"

Een rente van 9% op een familielening, die in 2015 is aangegaan, vindt Hof Den Haag te hoog. De Belastingdienst heeft de (zakelijke) rente terecht vastgesteld op 4,5%. Familielening Een familielening is een lening die door ouders wordt verstrekt aan een kind voor de (gedeeltelijke) financiering van de eigen woning van dat kind. Als de […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-820","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/820","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/comments?post=820"}],"version-history":[{"count":0,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/820\/revisions"}],"wp:attachment":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/media?parent=820"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/categories?post=820"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/tags?post=820"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}