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Post by gusgorilla on Apr 3, 2017 21:24:49 GMT
I was sent a very helpful email by FS which contained the following tax information for individuals: I suffered a significant capital loss on Ablrate this year caused by what appears to be a borrower stealing collateral that had not been physically secured by Ablrate. Given that they have not (yet?) compensated me for this failure, I would like to offset the loss as mentioned in points 1 and 3 above. If, in what looks like the increasingly unlikely eventuality of collateral recovery, I get some or all of my money back I would declare this in a subsequent year, as mentioned in point 2 above. In the absence of tax statements on the website I believe we need to ask for our tax statements to be done manually. In this case this would seem to be an advantage as I can, presumably, ask for the capital loss to be declared on my tax statement. ablrate, do those of us who were involved need to specially request a loss to be included in our tax statements, is this automatic, or do you intend to compensate us for not securing our property should you ultimately fail to get it back despite your best efforts?
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registerme
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Post by registerme on Apr 4, 2017 12:03:33 GMT
I have a piece of two of the loans you are talking about, so just to play Devil's Advocate for a bit..... 1. They've not been declared to be in default yet.2. I don't see how they can be until legal proceedings conclude. 3. Given that how can you know how much loss to declare? 4. Is compensation due? It is unclear to me whether or not this is the case, and presumably this won't become clear until after legal proceedings conclude.5. If compensation is due you need to know how much you have lost (see 3. above) before you can have a meaningful discussion about amounts. 6. They will need to treat all investors equally. The timing and conclusion of legal proceedings aren't clear, but to expect them to work to a tax agenda is unrealistic. EDIT: Corrected due to more accurate information from ptr120 - see further commentary down the thread. |
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ptr120
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Post by ptr120 on Apr 4, 2017 17:15:32 GMT
I have a piece of two of the loans you are talking about, so just to play Devil's Advocate for a bit..... 1. They've not been declared to be in default yet. 2. I don't see how they can be until legal proceedings conclude. 3. Given that how can you know how much loss to declare? 4. Is compensation due? It is unclear to me whether or not this is the case, and presumably this won't become clear until after legal proceedings conclude. 5. If compensation is due you need to know how much you have lost (see 3. above) before you can have a meaningful discussion about amounts. 6. They will need to treat all investors equally. The timing and conclusion of legal proceedings aren't clear, but to expect them to work to a tax agenda is unrealistic. 1. Yes they have 2. Default = unrecoverable without legal action They also made a post some time ago that nobody would lose out as a result of this so after all legal proceedings have concluded I would expect them to make good anything outstanding / not recovered
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registerme
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Post by registerme on Apr 4, 2017 18:36:17 GMT
Thanks for the corrections ptr120. |
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mason
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Post by mason on Apr 4, 2017 18:59:07 GMT
Maybe we could strike out the bit about not being in default registerme? I'm planning to be able to make a deduction for the defaulted loan I hold. Although that does rather depend on ablrate playing ball. |
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Post by gusgorilla on Apr 4, 2017 20:40:16 GMT
Maybe we could strike out the bit about not being in default registerme ? I'm planning to be able to make a deduction for the defaulted loan I hold. Although that does rather depend on ablrate playing ball. It seems to me that FS have the right way of handling this. Their method closely follows the guidance and appears clean. I hope that ablrate will follow suit in their reporting. The FS tax statement looks like this: A Total interest earned £X B Total tax withheld £0.00 C Capital losses from defaulted loans £Y D Capital recovered from defaulted loans £Z (I'm not sure what item B is for, but ignore that for now by assuming it is always 0). Reporting in this format makes it easy to fill in tax returns. Net, taxable interest is simply A - C + D. If some or all of a loan defaulted in one year is recovered in a subsequent year then it will appear in that year's tax statement so it all works out nicely.
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registerme
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Post by registerme on Apr 4, 2017 20:49:11 GMT
Maybe we could strike out the bit about not being in default registerme ? I'm planning to be able to make a deduction for the defaulted loan I hold. Although that does rather depend on ablrate playing ball. Yep, that's a sensible request, I've gone back and edited my original post to reflect ptr120 's commentary (though have left his quote of what I originally said alone).
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Post by gusgorilla on Apr 4, 2017 20:49:13 GMT
Thanks for this ptr120 . I must have missed that post. Good for them if so.  ablrate , would you like to take the opportunity to confirm this again so your good name is left untarnished?
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blender
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Post by blender on Apr 4, 2017 21:48:21 GMT
Thanks for this ptr120 . I must have missed that post. Good for them if so. ablrate , would you like to take the opportunity to confirm this again so your good name is left untarnished? Whether or not this happens these would still be 'recoveries' and the present position is not affected. That is, that these are losses which can be set against income tax in 2016/7. Recoveries are then taxed.
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ptr120
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Post by ptr120 on Apr 5, 2017 16:37:09 GMT
For those who have asked, the comment I mentioned previously can be found here: p2pindependentforum.com/post/136561Quote: I may be making a rod for our own back here, but we have pursued this debt vigorously (some say far more than other platforms do) and we will find a solution to make sure lenders do not lose out.
(bolding is mine) I thought at the time that it was a bold claim! |
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littleoldlady
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Post by littleoldlady on Apr 6, 2017 8:30:15 GMT
I, for one, only want to submit a Self Assessment which matches what the platforms have reported. I don't like this business of asking Abl to calculate interest minus losses for me on a one-off basis, as I have no way of knowing if they will report the same figures to HMRC later. So as a minimum I request that ablrate inform us when they have made that report so we can request the figures by email, but preferably they should be available from the site. |
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johnfleet
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Post by johnfleet on Apr 13, 2017 20:34:20 GMT
my tax statement from Ablrate (hoorah they've finally produced one - only took 2 years!!!) - clearly shows the (potential) container loss and nets that from interest received to show:
Report to HMRC xxxx
That seems clear enough?
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littleoldlady
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Post by littleoldlady on Apr 13, 2017 21:26:47 GMT
They slipped that in without any fanfare! Not yet complete apparently but I think it will suffice for me.
One anomaly - the interest on the tax statement does not match the "Last 12 months Interest Earned" shown at the top of the dashboard when I made a note of it on 6th Apr, thinking that this was the only clue I was going to get for my tax return.
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stevio
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Post by stevio on Apr 13, 2017 21:40:34 GMT
They slipped that in without any fanfare! Not yet complete apparently but I think it will suffice for me. One anomaly - the interest on the tax statement does not match the "Last 12 months Interest Earned" shown at the top of the dashboard when I made a note of it on 6th Apr, thinking that this was the only clue I was going to get for my tax return. Sorry haven't looked, but was that confirmation AB have added default losses to tax statement now? Is the interest at the top not total interest earned since starting with AB, rather than per tax year?
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mason
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Post by mason on Apr 13, 2017 22:35:36 GMT
Sorry haven't looked, but was that confirmation AB have added default losses to tax statement now? Is the interest at the top not total interest earned since starting with AB, rather than per tax year? Yes, the tax statement now includes defaults. Both interest figures are shown on the site.
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