Tax rate and implications?

If I lend money say example 10,000.00 to a particular party so they can play with it and invest in what every they see fit with the conditions that they pay me lets just say for example 12.5% a month. What ever else they may make they can keep for themselfs. Keeping in mind that this is a loan not an investment.

How will that be taxed. Will it be taxed as a personal income or can it still be taxed as investment income? Regardless of the fact that in my eyes I am lending the money not investing it.

thank you in advance to the world for your consideration.

Tax rate and implications?fha loan

Okay, I will express an opinion here - but this is a tricky thing to comment on without knowing the full background (e.g if you have a business/will lend money from a company etc..)

I will assume that you using your own personal funds.

For an individual lending money with interest due and payable is normally an investment and any interest received is taxable under s369(1) Part 4 ITTOIA 2005 (formerly under Case III Sch D ICTA 1988), unless you are a money lender then interest received forms part of trading profits.

If you were lending a mate 锟?0k to play roulette then he shared the win with you that would be exempt.

Seek professional advice on this.