'What fresh hell is this?' - Plan to tax 'bank of mum and dad' loans sparked raft of complaints

The spokeswoman said inter-family loans would now be considered by officials from the department and Revenue with a view to recommendations later in the year for consideration by the minister. File photo: Pexels

Finance Minister Paschal Donohoe was hit with a wave of complaints over proposals to tax loans from the so-called 'bank of mum and dad'.

The Department of Finance had said before the budget it planned to tackle inter-family loans by linking them to the best interest rate somebody could have secured from a financial institution. However, the change was withdrawn at the eleventh hour with Mr Donohoe saying it had the potential to “create inconsistencies”.