JamesFrance
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Port Grimaud 1974
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Post by JamesFrance on Feb 15, 2016 18:05:50 GMT
Well I answered the questions asked, but the one missing was whether I am eligible to open an ISA, to which the answer would have been NO as I am not a UK resident. The survey completed before I could delete my answers as not relevant.
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registerme
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Post by registerme on Feb 15, 2016 21:47:34 GMT
Interesting to note that other p2p platforms considering ISAs seem to imply that you cannot transfer funds from your non-ISA account on the platform to a new ISA account, however the AC survey seems to imply that (on AC), you will be able to.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Feb 15, 2016 22:20:19 GMT
Interesting to note that other p2p platforms considering ISAs seem to imply that you cannot transfer funds from your non-ISA account on the platform to a new ISA account, however the AC survey seems to imply that (on AC), you will be able to. Nobody has said you cant transfer funds ie cash that I have seen. What you wont be able to do is transfer holdings in loans. Pretty sure AC just means shift cash by that question, though on first reading I did have the same thought
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SteveT
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Post by SteveT on Feb 15, 2016 22:56:17 GMT
It should be pretty simple to (in effect) B&B a good part of your holdings on AC, but it may take quite a while. By setting Buy targets in the new ISA account and then, once a reasonable figure has been reached in a loan via shrapnel purchases, selling an equivalent amount in the non-ISA account and transferring the cash. It will need a modest initial cash float but nothing dramatic.
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kermie
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Post by kermie on Feb 15, 2016 23:16:58 GMT
It should be pretty simple to (in effect) B&B a good part of your holdings on AC, but it may take quite a while. By setting Buy targets in the new ISA account and then, once a reasonable figure has been reached in a loan via shrapnel purchases, selling an equivalent amount in the non-ISA account and transferring the cash. It will need a modest initial cash float but nothing dramatic. For some of the readily available loans, I'm sure that will work fine over a few months. But there are plenty loans that are in high demand where I could not even hope to re-build them up before the end of their respective loan terms. In short, I think I could only migrate cash from non-ISA to ISA at the roughly the rate at which new loans draw down (losing diversification is not something I will contemplate), plus perhaps the dribble of shrapnel that might help at the edge. I'd expect such a migration to take the full year at least - as a result, it is likely to be this factor (i.e. the rate of migration, rate of new loans) which determines just how much ISA money I transfer or deposit.
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SteveT
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Post by SteveT on Feb 15, 2016 23:27:23 GMT
Yes, there are some tightly held loans that are likely to be hard to B&B, but you might be surprised how quickly a new AC account can build a substantial and well diversified portfolio, at least now that plenty of new loans are leading existing lenders to sell down other holdings. I put a chunky 5 figure sum into a new AC account a few weeks back, expecting most of it to stay swept into the QAA (from the MLIA) for a long period. Instead it is already almost fully invested across some 65 loans with none of them holding more than 4% of the total balance.
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jonah
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Post by jonah on Feb 16, 2016 5:51:24 GMT
It should be pretty simple to (in effect) B&B a good part of your holdings on AC, but it may take quite a while. By setting Buy targets in the new ISA account and then, once a reasonable figure has been reached in a loan via shrapnel purchases, selling an equivalent amount in the non-ISA account and transferring the cash. It will need a modest initial cash float but nothing dramatic. This is almost exactly my current plan for AC. Planning on transferring previous years cash for the float is the only tweak.
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Post by crabbyoldgit on Feb 16, 2016 6:15:11 GMT
Sadly  the only account is held by my wife a non tax payer,self employed, the only advantage we can see is not possibly having to declare on her self employed tax return.So the account does not offer any advantage we can see unless i miss something.Of course if any rich benefactor on this site would wish to donate holdings to make tax an issue, i am sure they would be gratefully received.  |
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Post by bracknellboy on Feb 16, 2016 7:56:29 GMT
Is there any reason why a platform couldn't offer an explicit b&b option - even if it was by way of still requiring a temporary float in the ISA. The first to offer that might the first to grab a good portion of the ISA business, even if it did not result in much net new lender inflow in the short term.
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Post by chris on Feb 16, 2016 8:29:53 GMT
Is there any reason why a platform couldn't offer an explicit b&b option - even if it was by way of still requiring a temporary float in the ISA. The first to offer that might the first to grab a good portion of the ISA business, even if it did not result in much net new lender inflow in the short term. I literally asked that question of our compliance officer this morning. I'll report back once I've heard back from him. Technologically it's no problem.
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sl75
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Post by sl75 on Feb 16, 2016 9:21:34 GMT
Is there any reason why a platform couldn't offer an explicit b&b option - even if it was by way of still requiring a temporary float in the ISA. The first to offer that might the first to grab a good portion of the ISA business, even if it did not result in much net new lender inflow in the short term. It might perhaps depend in part on how "normal" sales are structured...? Presumably a normal Bed-and-ISA would occur within the buy/sell spread, but for platforms where there is no concept of such a spread, or where the price is capped (e.g. at par) and the free market price would be higher than this cap, it might be more questionable. For a loan that is readily available at a 1% discount, but where there is unfulfilled demand at a 1.5% discount, the current market price is known to a reasonable level of precision, and it's merely a question of looking up the rules for exactly which price(s) within the spread should be used. For a loan where there is a large amount of unfulfilled demand at par, how would the market price be determined? (it's clearly more than par value, but by how much?). Similar questions of how to determine the correct market price for a transfer could arise if FC were to offer such an option, given the 3% cap on premiums, and the existence of loans that could achieve an almost instant sale when offered at that cap... and it's tricky in any case given the one-sided nature of the market there.
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pikestaff
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Post by pikestaff on Feb 16, 2016 10:25:12 GMT
Where HMRC accepts bed-and-ISA the transactions have to go through the market, and the current rules specifically require that you cannot buy from yourself. This means direct transfers are out, unless the rules are changed. How the HMRC will view markets that do not allow a market price to be set remains to be seen.
As I've explained in other threads, and in my response to the consultation, there is a decent case to be made for changing the rules to permit par transfers for p2p because any resulting tax leakage should be minimal. We shall find out soon enough...
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Post by chris on Feb 16, 2016 10:51:45 GMT
Is there any reason why a platform couldn't offer an explicit b&b option - even if it was by way of still requiring a temporary float in the ISA. The first to offer that might the first to grab a good portion of the ISA business, even if it did not result in much net new lender inflow in the short term. The answer that I've been given is that we simply do not know yet what the rules will be and this is one of the areas that had a huge amount of feedback to the consultation. HMRC are yet to determine the rules. As soon as we know what we can and cannot do we'll try and work on a solution.
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sl75
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Post by sl75 on Feb 16, 2016 11:03:13 GMT
ISTM that AC could relatively easily implement an automatic "slow transfer" at the very least, by repurposing existing tools in their toolbox... In effect automating the process that SteveT described a few posts back. First would be a (presumably non-controversial) option to sweep any free cash from the non-ISA account into the ISA until the annual subscription limit was reached. This would ensure that whenever any sale was achieved or any repayment received, the monies are immediately placed in the ISA wrapper (from which they can be immediately invested subject to availability). Second would be a mechanism to specify a total target holding for each loan, with an option so that whenever your total holding (ISA and non-ISA) exceeds the specified level, a sell instruction for the difference is automatically generated in the non-ISA account. There'd be no "special treatment", merely an automation of what the user (or a bot they wrote) could do anyway. As things stand at present, AC wouldn't need to do a special deal on trading fees (like often occurs with bed-and-ISA), because they don't charge any. Edit: I'd also note that this is largely an intellectual exercise for me, as due to changes in personal circumstances, I won't be eligible to subscribe to a new ISA in 2016/17, so any ISA-related activity would need to be transfers of previous years' subscriptions (which I assume are still allowed...?) |
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Post by chris on Feb 16, 2016 11:08:10 GMT
ISTM that AC could relatively easily implement an automatic "slow transfer" at the very least, by repurposing existing tools in their toolbox... In effect automating the process that SteveT described a few posts back. First would be a (presumably non-controversial) option to sweep any free cash from the non-ISA account into the ISA until the annual subscription limit was reached. This would ensure that whenever any sale was achieved or any repayment received, the monies are immediately placed in the ISA wrapper (from which they can be immediately invested subject to availability). Second would be a mechanism to specify a total target holding for each loan, with an option so that whenever your total holding (ISA and non-ISA) exceeds the specified level, a sell instruction for the difference is automatically generated in the non-ISA account. There'd be no "special treatment", merely an automation of what the user (or a bot they wrote) could do anyway. As things stand at present, AC wouldn't need to do a special deal on trading fees (like often occurs with bed-and-ISA), because they don't charge any. All valid options. Technologically we're in a very good place to put out a very comprehensive ISA offering. It will all come down to the final rules though so until they're clarified we can't really finalise and announce our plans.
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the only account is held by my wife a non tax payer,self employed, the only advantage we can see is not possibly having to declare on her self employed tax return.So the account does not offer any advantage we can see unless i miss something.Of course if any rich benefactor on this site would wish to donate holdings to make tax an issue, i am sure they would be gratefully received. 
