archie
Posts: 1,838
Likes: 1,842
|
Post by archie on Aug 26, 2017 8:23:48 GMT
This may be completely of the wall & random thinking but i would say if MT (or any company ) allow & are happy for their customers to trade defaulted loans then may be if people want to sell ALL their loans and cash out an account that the platform should pay off the defaults as well and try to sell them on the SM themselves FCA wouldn't allow the platform to take on the risk.
|
|
spiral
Member of DD Central
Posts: 908
Likes: 455
|
Post by spiral on Aug 26, 2017 9:24:52 GMT
Just a clarification. Insuffucient tax means insufficient taxable income from P2P you cant offset losses against earnings from non-p2p sources eg bank interest. So if you earn £1000 interest on P2P and £1000 on bank accounts, currently the first £1000 is tax free so you only pay tax on £1000. Is that the P2P or bank or is it assumed 50/50? So if I had a £1000 loss in the example above is all eligible, none or half for carrying forward?
|
|
SteveT
Member of DD Central
Posts: 6,873
Likes: 7,918
|
Post by SteveT on Aug 26, 2017 9:28:59 GMT
Just a clarification. Insuffucient tax means insufficient taxable income from P2P you cant offset losses against earnings from non-p2p sources eg bank interest. So if you earn £1000 interest on P2P and £1000 on bank accounts, currently the first £1000 is tax free so you only pay tax on £1000. Is that the P2P or bank or is it assumed 50/50? So if I had a £1000 loss in the example above is all eligible, none or half for carrying forward? You declare P2P interest after deducting allowable "irrecoverable" P2P loans so, in your example, you would have had zero taxable P2P income. Thus all of your £1000 bank interest would be covered by the savings allowance.
|
|
spiral
Member of DD Central
Posts: 908
Likes: 455
|
Post by spiral on Aug 26, 2017 9:36:41 GMT
So if you earn £1000 interest on P2P and £1000 on bank accounts, currently the first £1000 is tax free so you only pay tax on £1000. Is that the P2P or bank or is it assumed 50/50? So if I had a £1000 loss in the example above is all eligible, none or half for carrying forward? You declare P2P interest after deducting allowable "irrecoverable" P2P loans so, in your example, you would have had zero taxable P2P income. Thus all of your £1000 bank interest would be covered by the savings allowance. So in my example, if there was no bank interest, would I lose the £1000 savings allowance or would this be an example where I could carry forward the loss as my £1000 of P2P income would be tax free?
|
|
archie
Posts: 1,838
Likes: 1,842
|
Post by archie on Aug 26, 2017 9:47:54 GMT
Savings allowance is a red herring. If you had £1000 P2P interest but also a loss of £1200 capital, you could declare £0 P2P interest and carry forward the £200 to offset against future years P2P interest. You don't have to offset the loss. If you think it might be recovered, you can take count it as taxable in the current year rather than defer to a later year when it's recovered. I believe the above is correct, someone correct me if it's wrong.
|
|
macq
Member of DD Central
Posts: 1,924
Likes: 1,192
|
Post by macq on Aug 26, 2017 9:54:44 GMT
This may be completely of the wall & random thinking but i would say if MT (or any company ) allow & are happy for their customers to trade defaulted loans then may be if people want to sell ALL their loans and cash out an account that the platform should pay off the defaults as well and try to sell them on the SM themselves FCA wouldn't allow the platform to take on the risk. that's a shame(may be they could loan the money back ).Was a bit of random early morning thinking more along the lines of a platform showing confidence in the defaulted loan & their recovery methods
|
|