SteveT
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Post by SteveT on Apr 13, 2016 8:58:05 GMT
Thanks And for purchases on the SM by a Ltd company, I presume although FS will report the interest received, you do your own calculation, taking the sale price away from the interest and capital received to give the profit? For my company account, I manually track accrued interest (paid or received) and any premium / discount involved on each SM transaction I make. If I buy a loan on the SM for 1% discount but pay the seller 50 days of accrued interest, then the discount increases my net trading profit but the accrued interest paid reduces it (effectively offsetting it against the subsequent interest paid at completion)
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stevio
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Post by stevio on Apr 13, 2016 9:32:11 GMT
Thanks And for purchases on the SM by a Ltd company, I presume although FS will report the interest received, you do your own calculation, taking the sale price away from the interest and capital received to give the profit? For my company account, I manually track accrued interest (paid or received) and any premium / discount involved on each SM transaction I make. If I buy a loan on the SM for 1% discount but pay the seller 50 days of accrued interest, then the discount increases my net trading profit but the accrued interest paid reduces it (effectively offsetting it against the subsequent interest paid at completion) Thanks Steve, do I really need to go into that detail to track the actual discount/premium, surely taking the interest and capital received away from the purchase price should give the same figure of profit?
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SteveT
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Post by SteveT on Apr 13, 2016 9:39:46 GMT
For my company account, I manually track accrued interest (paid or received) and any premium / discount involved on each SM transaction I make. If I buy a loan on the SM for 1% discount but pay the seller 50 days of accrued interest, then the discount increases my net trading profit but the accrued interest paid reduces it (effectively offsetting it against the subsequent interest paid at completion) Thanks Steve, do I really need to go into that detail to track the actual discount/premium, surely taking the interest and capital received away from the purchase price should give the same figure of profit? You're correct that it results in the same net profit figure. However my accountant (who is also "she who must be obeyed") requires me to track the figures separately so they can be recorded in the right place in the company books.
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duck
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Post by duck on Apr 13, 2016 11:25:45 GMT
I actually do the same as SteveT with my business account and record loans individually with discount and term remaining. My accountants don't need haven't requested this information but it is helping to put together some 'useful' graphs that relate to time remaining and discount. Knowing that a tax investigation is always a possibility makes me aware that you can never have too much information to hand. ... or perhaps I just like data
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locutus
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Post by locutus on Jun 7, 2016 11:57:28 GMT
If you sell an investment on the secondary market is it classed as a capital gain or income? If you can convince HMRC that FS loans are "simple debts" then probably neither - see this post earlier in the thread.
FS will not (as things stand today) be reporting any secondary market sales as needing to be notified for either CGT or income tax.
Sorry mrclondon to dig up such an ancient post but do you have a source for the part highlighted? I'm taking a second look at the FS SM and want to understand exactly what my tax liabilities would be for any sales.
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Post by mrclondon on Jun 7, 2016 12:00:31 GMT
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jimbob
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Post by jimbob on Jun 7, 2016 12:04:10 GMT
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locutus
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Post by locutus on Jun 7, 2016 12:06:18 GMT
Thanks. I had a read and it mentions that SM sales are not reported to HMRC with regards Income Tax. However, it makes no such statement about Capital Gains Tax. It states that purchases and sales are not liable for Capital Gains Tax but it doesn't say what is reported to HMRC so are we to infer that they don't report anything? I know it may seem pedantic but I would like to be certain. I will also ask FS directly.
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locutus
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Post by locutus on Jun 7, 2016 12:10:38 GMT
And you guys keep telling me that the FS SM is simple! I'd hate to see what you think is complicated.
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ramblin rose
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“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on Jun 7, 2016 18:14:28 GMT
And you guys keep telling me that the FS SM is simple! I'd hate to see what you think is complicated. Never passed my 'simple' barrier either; I can understand why those who can be bothered to get their heads around it like it, but I don't have the brain space available to be bothered with it all. I do use the SM to sell occasionally, but generally only tiddlers that I just want shut of before they pay me back an even tiddlier amount of interest, and always at par so no mental hi-jinks required. I dread the day that the platforms with the truly simple SMs give in to the vocal minority and add layers of mess to theirs. Horses for courses - I ne like it pas, but just means I hardly use it. I can pretend there isn't an SM most of the time, and should the time come when I have the mental bandwidth available, I might learn to like it myself
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hendragon
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Post by hendragon on Jul 28, 2016 16:52:19 GMT
anyone having trouble getting the secondary market page to load........the site seems to be running very very slowly (it really doesn't seem to like Firefox)
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mikes1531
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Post by mikes1531 on Jul 28, 2016 18:28:06 GMT
anyone having trouble getting the secondary market page to load........the site seems to be running very very slowly (it really doesn't seem to like Firefox) Seems to be working OK for me. (Win7/Firefox)
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hendragon
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Post by hendragon on Jul 28, 2016 19:00:29 GMT
ty mikes. The problem seems to have cleared on mine.
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Liz
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Post by Liz on Aug 6, 2016 18:17:36 GMT
Is there anyway on FS, tho tell what volume of loans have sold and which loans sell?
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SteveT
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Post by SteveT on Aug 6, 2016 19:32:51 GMT
Is there anyway on FS, tho tell what volume of loans have sold and which loans sell? I don't believe so, although FS may have included some stats in a previous monthly update. Pawn loans tend to get picked up at lower rates than property, and smaller value / lower LTV property is favoured over the big ones. There seem to be 2 distinct selling markets: loans within the first month or two, where buyers are picking up loans they've perhaps missed out on, and loans in the penultimate month, where non-taxpayers / company lenders are buying at 1% or sometimes 2% discount for the extra yield.
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