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Free IOU / Debt Acknowledgement Template
An IOU (I Owe You) is a simple written acknowledgement that one person owes money to another. While less formal than a loan agreement, a signed IOU provides valuable evidence of a debt under English law and helps avoid misunderstandings between friends, family, or colleagues in the UK.
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IOU — DEBT ACKNOWLEDGEMENT
England And Wales · Limitation Act 1980, S.29 — Not A Promissory Note
BORROWER (MAKER)
Sophie Louise Anderson
14 Maple Close, Bristol BS3 4QR
LENDER (PAYEE)
William James Anderson
28 Victoria Road, London SW1A 2BN
PARTY DETAILS
| BORROWER — DATE OF BIRTH | 9 August 1992 |
| BORROWER — EMAIL | sophie.anderson@example.co.uk |
| LENDER — EMAIL | w.anderson@example.co.uk |
Amount Owed: £3,500.00
Advanced: 15 January 2026
I, Sophie Louise Anderson of 14 Maple Close, Bristol BS3 4QR, acknowledge in writing that I owe to William James Anderson of 28 Victoria Road, London SW1A 2BN the sum of £3,500.00, being money lent to me on 15 January 2026 for the purpose of assistance with a residential house deposit. This document is a simple written acknowledgement of debt and is not a negotiable instrument within the meaning of the Bills of Exchange Act 1882.
1.
ACKNOWLEDGEMENT OF DEBT
I, Sophie Louise Anderson, hereby acknowledge and confirm that I owe to William James Anderson the sum of £3,500.00 (the "Debt") advanced to me on 15 January 2026. This acknowledgement is signed by me as a debtor in accordance with section 30(1) of the Limitation Act 1980 (or, for Scotland, Schedule 2 paragraph 2 of the Prescription and Limitation (Scotland) Act 1973) and is intended to satisfy section 29 of the Limitation Act 1980 so as to restart the six-year limitation period for the Lender to bring proceedings to recover the Debt.
2.
INTEREST
The Debt is acknowledged on an interest-free basis. No interest, charges or fees shall accrue on the outstanding balance, provided that this does not prejudice any statutory right of the Lender to claim interest on judgment pursuant to section 69 of the County Courts Act 1984 or section 35A of the Senior Courts Act 1981.
3.
REPAYMENT
The Borrower shall repay the full outstanding balance of the Debt on or before 15 July 2026. Payment shall be made by bank transfer (BACS / Faster Payment) to Barclays Bank, sort 20-00-00, account 87654321 (W J Anderson). If the due date falls on a day that is not a business day in the United Kingdom, payment shall be made on the immediately preceding business day.
4.
DEFAULT AND ACCELERATION
If the Borrower fails to make any payment due under this IOU for 14 days after its due date, or commits any material breach of this IOU, the whole outstanding balance of the Debt (together with any accrued interest) shall, at the option of the Lender on written notice, become immediately due and payable. The Lender's rights and remedies under this IOU are cumulative and not exclusive of any rights provided by law. The Borrower shall be liable for the reasonable and proportionate costs incurred by the Lender in recovering any unpaid sum, including (subject to the court's discretion) legal fees.
5.
NATURE OF THIS INSTRUMENT
This document is a simple written acknowledgement of debt — an "IOU". It is not drawn in order form and is not a promissory note, bill of exchange or other negotiable instrument within the meaning of section 83 of the Bills of Exchange Act 1882. Accordingly, it does not confer rights of negotiation, endorsement or holder-in-due-course status. The Lender's rights in respect of the Debt are contractual and rest in the underlying loan.
6.
GOVERNING LAW AND JURISDICTION
This IOU and any dispute or claim (including non-contractual disputes) arising out of or in connection with it or its subject matter shall be governed by and construed in accordance with the law of England and Wales. The parties submit to the exclusive jurisdiction of the courts of England and Wales in respect of any such dispute.
WITNESS PARTICULARS
| WITNESS — ADDRESS | 5 Oak Avenue, Bristol BS7 8TT |
| WITNESS — OCCUPATION | Accountant |
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated.
BORROWER
Sophie Louise Anderson
Date: ____________________
WITNESS
Emma Charlotte Harris
Accountant
Date: ____________________
Available as a print-ready PDF or an editable Microsoft Word (.docx) file.
What Is an IOU?
An IOU is a short, informal document in which one person (the borrower) acknowledges that they owe a specific sum of money to another person (the lender). It typically records the amount, the date, and the names of both parties, and is signed by the borrower.
IOUs are most commonly used for informal or personal loans — money lent between friends, family members, or colleagues — where a full loan agreement feels unnecessary. Despite their simplicity, IOUs are recognised as evidence of a debt under English law.
While an IOU is less detailed than a formal loan agreement (it may not cover interest, repayment schedules, or default terms), it is far better than relying on a verbal promise. A signed IOU can be used as evidence in county court proceedings if the debt is not repaid.
What's Covered in This Template
Our IOU template keeps things simple while covering the essentials:
Lender Details
Full name and address of the person lending the money.
Borrower Details
Full name and address of the person receiving and owing the money.
Amount Owed
The specific sum acknowledged as owed, in both figures and words.
Date of Loan
When the money was lent or the debt arose.
Reason for Loan
Optional description of why the money was borrowed.
Repayment Date
When the borrower agrees to repay, if a date is set.
Interest
Whether any interest is charged and at what rate (optional).
Borrower Signature
Dated signature of the borrower confirming the debt.
Witness
Optional witness signature for added credibility.
How to Create an IOU
Follow these steps to document a personal loan simply and effectively:
- 1
Agree the Amount
Confirm exactly how much is being lent. Write the amount in both numbers and words to avoid ambiguity.
- 2
Set a Repayment Date
Agree when the money will be repaid. This can be a specific date, "on demand," or in instalments.
- 3
Decide on Interest
Most informal IOUs between friends or family are interest-free, but you can include interest if both parties agree.
- 4
Fill in the Template
Complete both parties' details, the amount, dates, and any additional terms.
- 5
Sign and Keep Copies
The borrower signs and dates the IOU. Both parties should keep a copy. Having a witness sign adds evidential weight.
Why Doxuno documents are different
Four things that make our templates more thorough than AI-generated drafts and more current than static template libraries.
Always current
Always current with the law
Templates carrying statute references are continuously updated as the law changes. Your document always reflects the current legal framework.
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Print-ready PDF
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Continue editing in Word after download. Add custom clauses, reuse the template for similar agreements, or share with a colleague for collaborative review.
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Legal Considerations
IOUs are simple documents, but they interact with important areas of English law including limitation periods and evidence rules.
This template is for informational purposes only and does not constitute legal advice. Consult a qualified solicitor for advice specific to your situation.
Reviewed for England & Wales law
Evidential Value
An IOU is evidence of a debt, not a contract in itself under English law. However, combined with evidence that money was actually transferred (bank statements, etc.), it provides strong proof in any UK county court claim for recovery of the debt.
Limitation Period
Under the UK Limitation Act 1980, the creditor has six years from the date the debt became due to bring a claim in England and Wales. If the IOU is signed as a deed (executed with the formalities of a deed), the limitation period extends to twelve years.
Interest
If no interest is specified, the lender generally cannot charge interest on an informal loan in the UK unless the court awards it under section 69 of the County Courts Act 1984. To charge interest, it should be agreed in writing at the outset under British law.
Tax Implications
Personal loans between individuals are generally not taxable for the borrower in the United Kingdom. However, if interest is charged, the interest income may be taxable for the lender. Large sums lent interest-free between non-family members could, in rare cases, raise questions about gifts or disguised transactions under British tax rules.
Frequently Asked Questions
Record Your Loan Simply and Clearly
Use our free IOU template to document informal loans between friends, family, or colleagues. Complete and download in minutes.
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