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Post by Ton ⓉⓞⓃ on Feb 24, 2018 13:26:28 GMT
Had an email on friday saying that the MLIA function would open up to the IFISA early next week. I hope there's no delay while AC check how "Exchange Loan" units are working. I see there's also a Blogg entry on it too. My thinking about this, just days before it hopfully launches, is that it seems that having an IFISA and a standard a/c (account) means that we get two bites of the cherry when new loans are drawn, useful for MLIA (MLA). I mean presumably we can double our holding in a loan if we so wish and possibly of course double our losses in the same action. The Manual Lending ISA is set to launch next week - email title (Edit, the I-MLA started on the 26.2.18) |
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ceejay
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Post by ceejay on Feb 24, 2018 13:58:20 GMT
Having a double bite is one possible benefit, granted.
I'm more interested in shifting non-ISA to ISA, and I'm not sure what the best strategy would be for managing this with MLA investments. For most loans, there is either a wedge waiting to sell, or a wedge waiting to buy, so doing a quick sell-and-buy isn't going to work.
The slow strategy would be just to make all new investments in the ISA world and let non-ISA run down, but that could take a while.
Any bright ideas for a strategy to speed it up?
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Post by Ton ⓉⓞⓃ on Feb 24, 2018 14:24:29 GMT
Having a double bite is one possible benefit, granted. I'm more interested in shifting non-ISA to ISA, and I'm not sure what the best strategy would be for managing this with MLA investments. For most loans, there is either a wedge waiting to sell, or a wedge waiting to buy, so doing a quick sell-and-buy isn't going to work. The slow strategy would be just to make all new investments in the ISA world and let non-ISA run down, but that could take a while. Any bright ideas for a strategy to speed it up? Over February I've pruned all my a/c's selling about half and yesterday I applied for the AC IFISA and transferred that lump over, I'm now waiting for the launch of the IFISA-MLA with most sitting in the IFISA-QAA. It was a bind selling ~£18.5k but I've had slice of about 98% of the entire AC loan book. I picked soon to expire loans, more risky loans in my opinion, some of the higher LTV, all of the Dev. loans, low Interest rate loans all to sell. I've tended to keep the loans that've proved reliable payers/managers, harder to acquire, higher interest rates. The other half of the bind is setting a few hundred new instructions in the IFISA-MLA (or I-MLA?) is there a quick way of doing this, outside of buying one of the packaged a/c's (I-GBBA etc)?
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Post by stuartassetzcapital on Feb 25, 2018 9:33:07 GMT
The second (bespoke user mandates on MLA) uses the first (the API) - still looking to roll out both as bespoke mandates are much more usable than the API for most investors.
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Post by Ton ⓉⓞⓃ on Feb 26, 2018 12:06:26 GMT
All loans have a "Your Notes" box which we can edit to put in our own commentary, I put comments such as, " Pays but erratically" and "Buy once loan amortizes" etc for some I put in a cash value limit. These comments are visible most places on AC but, so far atleast, they are NOT visible on the IFISA side. I guess some might want to put different notes against them when held in the IFISA-MLA (I-MLA), but I'd still like to be able to see those notes from the standard side especially when I've written a cash limit. At the moment these don't show thru' will this change chris ? (if you're not in testing) |
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Post by chris on Feb 26, 2018 12:09:29 GMT
All loans have a "Your Notes" box which we can edit to put in our own commentary, I put comments such as, " Pays but erratically" and "Buy once loan amortizes" etc for some I put in a cash value limit. These comments are visible most places on AC but, so far atleast, they are NOT visible on the IFISA side. I guess some might want to put different notes against them when held in the IFISA-MLA (I-MLA), but I'd still like to be able to see those notes from the standard side especially when I've written a cash limit. At the moment these don't show thru' will this change chris ? (if you're not in testing) Doesn't really work for our wider plans I'm afraid. We may be able to make it configurable down the line (e.g. display notes from account x) but there are some hurdles with the update coming in 8 - 10 weeks.
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daveb4
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Post by daveb4 on Feb 26, 2018 17:01:28 GMT
All live and set up my requests. Now just have to hope i can buy some  . with a bit of luck with all the buying and selling going on especially with possible sales of loans/GBBA accounts before April 5 ISA time (as normal at this time of year) they will hopefully start filling nicely over next month or so. We all have to be a little more cautious with purchases in ISA as not tax allowable if they go wrong so may need to review my limits a little over next few weeks. |
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happy
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Post by happy on Feb 26, 2018 19:07:35 GMT
All live and set up my requests. Now just have to hope i can buy some . with a bit of luck with all the buying and selling going on especially with possible sales of loans/GBBA accounts before April 5 ISA time (as normal at this time of year) they will hopefully start filling nicely over next month or so. We all have to be a little more cautious with purchases in ISA as not tax allowable if they go wrong so may need to review my limits a little over next few weeks. Is it the case then, that if I have say £100 in a loan that “goes wrong” that that £100 somehow leaves the tax wrapper? How wrong does it have to go? Does the £100 move to the AC regular account? Don’t like the sound of that at all. I think daveb4 means you cannot offset any loss inside an IFISA against other income made elsewhere in your P2P portfolio. So lets say you make a net loss on all your loans on platform A of £1000 but make a gain on platforms B of £2000 you are only liable for tax on £1000 beind the net taxable income. However if platform A happened to be in an IFISA then you cannot take the loss to offset against non-IFISA so you pay tax on the whole £2000 earned outside the IFISA. Selecting a platform and portfolio with the least liklihood of a loss inside your IFISA is important I think.
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ceejay
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Post by ceejay on Feb 26, 2018 20:03:07 GMT
... Withdrawing a P2P agreement from the Innovative Finance ISA wrapper will result in the loss of any Tax Incentives associated with it.which makes me wonder how or why a lender would go about withdrawing a P2P agreement from the IFISA? It must be possible otherwise why would AC make a reference to it? ... What if you wanted to transfer out your IFISA holdings, either to another IFISA or any other kind of ISA? That would involve withdrawing a P2P agreement, after a fashion? Also, in the event of your death, ISAs generally lose their special tax status.
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happy
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Post by happy on Feb 26, 2018 20:10:08 GMT
Thanks happy . I think I knew that. I’m a little worried because about the same time I read daveb4 ’s post I also read the following on the ISA “important information” on AC’s web site: Withdrawing a P2P agreement from the Innovative Finance ISA wrapper will result in the loss of any Tax Incentives associated with it.which makes me wonder how or why a lender would go about withdrawing a P2P agreement from the IFISA? It must be possible otherwise why would AC make a reference to it? I’m not happy that they are “hiding” their ISA T&Cs on the main website, make it difficult to find out more. I think I may have to ask them some awkward questions tomorrow on the live chat thing. (still torn between FC ISA, AC ISA and the FC investment trust in a SS ISA here!) Interesting, does this sort of imply effectively an in-specie transfer out of the IFISA wrapper. If that is possible could you not then dump a loan out of the IFISA if you thought it would go bad (assuming you had the chance to). Not a bad feature actually! Would be interested to hear what the AC chat person has to say if you have the time. I have yet to open an IFISA as used allowance elsewhere but looking to open one in April so in a similar quantry ATM. I think I have discounted FC due to the unsecured loans leaving you too exposed to capital loss in a downturn. I'm sort of thinking AC GBBA2 at 6.26% +PF or perhaps even Lendingworks at 6% for 5 year +PF, both totally hands-off. Decisions, decisions.......
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mikes1531
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Post by mikes1531 on Feb 26, 2018 20:33:23 GMT
Interesting, does this sort of imply effectively an in-specie transfer out of the IFISA wrapper. If that is possible could you not then dump a loan out of the IFISA if you thought it would go bad (assuming you had the chance to). Not a bad feature actually! Can't you accomplish the same thing more simply by selling the parts of that loan on the SM? Or are you thinking of loans where parts are not sellable?
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happy
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Post by happy on Feb 26, 2018 20:46:24 GMT
Interesting, does this sort of imply effectively an in-specie transfer out of the IFISA wrapper. If that is possible could you not then dump a loan out of the IFISA if you thought it would go bad (assuming you had the chance to). Not a bad feature actually! Can't you accomplish the same thing more simply by selling the parts of that loan on the SM? Or are you thinking of loans where parts are not sellable? I was thinking more where you couldn't sell due to an iliquid SM for that loan but I suppose if you could also do it with suspended loans as well even better as it would allow you to bring the potential loss outside the ISA wrapper. If you transfer out it would obviously count as an IFISA withdrawal and I'm not sure you could replace the lost funds as I don't think there is the concept of Flexible IFISAs like Cash ISAs, is there? Edit: stuartassetzcapital confirmed the AC IFISA is a flexible ISA further down thread, good news and thankyou Stuart.
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daveb4
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Post by daveb4 on Feb 26, 2018 20:56:09 GMT
Re ISA element the way I see it is if a loan goes bad outside an ISA for say £100 you can offset that against other interest income (depending on what your other income is) in my case technically I would only only lose £80. If you lose that £100 in an ISA you can't offset and I would lose £100. I appreciate it is not a simple as this but give or take.
For me I use MLA in and out of ISA so I may be a little bit more bullish outside ISA and probably safer (residential less than 70% commercial less than 60% and almost no second charges). In itself this can be a challenge as everyone else does the same thing! Most of my cash will end up in the GBBA2 as hopefully most losses will be covered.
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happy
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Post by happy on Feb 26, 2018 21:18:28 GMT
I broardly agree and at frst thought was GBBA2 inside the IFISA, mosty MLA outside it. However, there is always th chance to dodge a bullet or two if you invest in the MLA so I'm still not sure. Six weeks to decide  |
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IFISAcava
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Post by IFISAcava on Feb 26, 2018 23:32:05 GMT
Re ISA element the way I see it is if a loan goes bad outside an ISA for say £100 you can offset that against other interest income (depending on what your other income is) in my case technically I would only only lose £80. If you lose that £100 in an ISA you can't offset and I would lose £100. I appreciate it is not a simple as this but give or take. For me I use MLA in and out of ISA so I may be a little bit more bullish outside ISA and probably safer (residential less than 70% commercial less than 60% and almost no second charges). In itself this can be a challenge as everyone else does the same thing! Most of my cash will end up in the GBBA2 as hopefully most losses will be covered. But you have (effectively) already offset ALL your income against tax in the ISA (i.e it is tax free), so unless your losses are more than your interest overall (in which case get out of P2P altogether regardless of whether in or out of the ISA), you are still ahead in the ISA, usually a long way ahead.
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. with a bit of luck with all the buying and selling going on especially with possible sales of loans/GBBA accounts before April 5 ISA time (as normal at this time of year) they will hopefully start filling nicely over next month or so.
