elliotn
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Post by elliotn on Feb 11, 2017 5:40:01 GMT
If it does eventually turn out not to be enough, capital cuts could be made then. Or they could just do the sensible thing that Zopa would do and have you take some of the cost of the defaults on your own loans at that point. The risk I could see there is that RS started as a de facto pooled investment and did not seek to provide lenders with maximum diversification as Zopa has so capital haircuts could fall very lumpily when the lender had no choice in investment method for either the loan amount (if you had 5k matched against a single loan) or type (if you were allocated to a higher risk SME or property development loan when you would have preferred prime consumer lending).
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jlend
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Post by jlend on Feb 18, 2017 19:06:19 GMT
Well interest taken off will directly reduce your tax liability (you will have had less interest to be taxed). Capital haircut is a bit more of an issue .. I would HOPE it can be treated as a loss, but it is not clear afaict. I posted the question on the ratesetter blog. They are going to put any capital loss in the end of year statement they create for everyone that already includes the interest earned. They said we would have to check with our accountant as they are not authorised to provide advice.
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