Post by r00lish67 on Oct 25, 2017 9:47:29 GMT
So, I'm in the throes of my 16/17 SA tax return. I'd like to check with you wise people whether my understanding of something is correct. The question is - where I've made capital losses on one platform that exceed the interest received on the same platform, what are the rules regarding carry forward?
For example, let's say on one of my platforms I have received £200 interest but made a capital loss of £300. You can also assume that I invest in other platforms which are all profitable.
Could I carry forward that capital loss of £300 into 17/18 if I chose? Or, would I be limited to relief of £100 (£300 loss -£200 gain)? Or, because of my profits on other platforms would I be obliged to recognise the full extent of the loss in 16/17? I think (unfortunately) it's the latter, but would be interested to know if others agree.
The reason I think this is that the closest thing to official I can find is the SAIM manual 12000 from HMRC
SAIM 12140 Relief allowed against interest received in later tax years
www.gov.uk/government/uploads/system/uploads/attachment_data/file/597959/Income_tax_relief_for_irrecoverable_peer_to_peer_loans_FINAL_GUIDANCE__2_.pdf
The person who made the loan, or the person to whom the rights to recover the principal of the loan
have been assigned, are both referred to here as simply as the Lender.
The Lender can claim relief on peer to peer (P2P) loans that became irrecoverable on or after 6 April
2015, against interest received from loans made through P2P platforms in the 4 years following the
year in which the debt became irrecoverable.
This relief can only be claimed if the loss resulting from the irrecoverable loan cannot be used wholly
against interest received through P2P platforms in the same year as the loan is treated as becoming
irrecoverable.
For example, let's say on one of my platforms I have received £200 interest but made a capital loss of £300. You can also assume that I invest in other platforms which are all profitable.
Could I carry forward that capital loss of £300 into 17/18 if I chose? Or, would I be limited to relief of £100 (£300 loss -£200 gain)? Or, because of my profits on other platforms would I be obliged to recognise the full extent of the loss in 16/17? I think (unfortunately) it's the latter, but would be interested to know if others agree.
The reason I think this is that the closest thing to official I can find is the SAIM manual 12000 from HMRC
SAIM 12140 Relief allowed against interest received in later tax years
www.gov.uk/government/uploads/system/uploads/attachment_data/file/597959/Income_tax_relief_for_irrecoverable_peer_to_peer_loans_FINAL_GUIDANCE__2_.pdf
The person who made the loan, or the person to whom the rights to recover the principal of the loan
have been assigned, are both referred to here as simply as the Lender.
The Lender can claim relief on peer to peer (P2P) loans that became irrecoverable on or after 6 April
2015, against interest received from loans made through P2P platforms in the 4 years following the
year in which the debt became irrecoverable.
This relief can only be claimed if the loss resulting from the irrecoverable loan cannot be used wholly
against interest received through P2P platforms in the same year as the loan is treated as becoming
irrecoverable.
