Hi, What is my position with regard to declaring income in my personal tax return in the following situation:- I sign a written agreement that I will lend an unrelated person an amount of money which I obtain as an additional drawdown on my margin loan account. I charge the borrower a small margin on the interest rate I pay on my margin loan. The agreement states that I will capitalise the interest due to me and accept the capitalised interest on repayment of the loan to me when the person sells their house. The house sale may be some years after the initial loan payment. Am I required to declare the interest as it is capitalised or when it is received on the loan repayment? Am I permitted to claim the margin loan interest on my loan account as it is capitalised? Any advice would be much appreciated.