IHTM14317 - The gift: interest free
loans
The grant of an interest free loan repayable on demand
- is not a transfer of value (because the
value of the loan is equal to the amount of it)
- but it is a gift because there is a clear
intention to confer bounty: the property disposed of is the
interest foregone.
The grant of such a loan is not, in itself, a GWR.
There is however a special provision relating to loans to
settlements which is mentioned later in this section. (
IHTM14401)
