r00lish67
Member of DD Central
Posts: 2,692 
Likes: 4,048
|
Post by r00lish67 on Dec 5, 2017 16:57:10 GMT
Hi, I need to sell some loans fairly quickly. How best to do this? Do I select 0% from the Premium / Discount dropdown? This means that I sell the loan but still get the advertised rate of interest on that loan? Thanks Only very attractive loans will sell at par quickly. I'd recommend you check each of the loans you wish to sell on the SM and see what the current best offer is (i.e. the lowest premium/highest discount) Then set yours at at least 0.1% below that to put yourself at the top of the queue. Depending on how quickly you really need it and just plain luck, you may need to apply a greater discount than that. FWIW, it's not a bad time to sell as the highest discount is only -0.5% for any loan. Hope that helps. Edit: To answer your specific question, yes, if you manage to sell something at par you'll receive the advertised rate of interest you've accrued to date. You'll also avoid any tax liability you may or may not have for the interest you're paid (N/A if it's an ISA part sale).
|
|
Liz
Member of DD Central
Posts: 2,426
Likes: 1,297
|
Post by Liz on Dec 5, 2017 17:01:54 GMT
Hi, I need to sell some loans fairly quickly. How best to do this? Do I select 0% from the Premium / Discount dropdown? This means that I sell the loan but still get the advertised rate of interest on that loan? Thanks If you sell @ -1% ie 1% discount, I will buy them 
|
|
rogerthat
Member of DD Central
Posts: 2,048
Likes: 1,994
|
Post by rogerthat on Dec 5, 2017 18:03:09 GMT
Hi, I need to sell some loans fairly quickly. How best to do this? Do I select 0% from the Premium / Discount dropdown? This means that I sell the loan but still get the advertised rate of interest on that loan? Thanks Only very attractive loans will sell at par quickly. I'd recommend you check each of the loans you wish to sell on the SM and see what the current best offer is (i.e. the lowest premium/highest discount) Then set yours at at least 0.1% below that to put yourself at the top of the queue. Depending on how quickly you really need it and just plain luck, you may need to apply a greater discount than that. FWIW, it's not a bad time to sell as the highest discount is only -0.5% for any loan. Hope that helps. Edit: To answer your specific question, yes, if you manage to sell something at par you'll receive the advertised rate of interest you've accrued to date. You'll also avoid any tax liability you may or may not have for the interest you're paid (N/A if it's an ISA part sale). Ok...a slaphead question probably..but are you saying that if I sold (or attempted to sell my entire portfolio, those being with at least 30days left of the loan term) I would avoid any tax liabilities to date on those sold..If so, and the tax liability is then on the buyer for the entire 6 months period, what financial benefit can the buyer possibly accrue..As you can probably tell ive never sold anything on here yet and by definition therefore never bought anything on the SM either..thanks
|
|
Liz
Member of DD Central
Posts: 2,426
Likes: 1,297
|
Post by Liz on Dec 5, 2017 18:05:50 GMT
Only very attractive loans will sell at par quickly. I'd recommend you check each of the loans you wish to sell on the SM and see what the current best offer is (i.e. the lowest premium/highest discount) Then set yours at at least 0.1% below that to put yourself at the top of the queue. Depending on how quickly you really need it and just plain luck, you may need to apply a greater discount than that. FWIW, it's not a bad time to sell as the highest discount is only -0.5% for any loan. Hope that helps. Edit: To answer your specific question, yes, if you manage to sell something at par you'll receive the advertised rate of interest you've accrued to date. You'll also avoid any tax liability you may or may not have for the interest you're paid (N/A if it's an ISA part sale). Ok...a slaphead question probably..but are you saying that if I sold (or attempted to sell my entire portfolio, those being with at least 30days left of the loan term) I would avoid any tax liabilities to date on those sold..If so, and the tax liability is then on the buyer for the entire 6 months period, what financial benefit can the buyer possibly accrue..As you can probably tell ive never sold anything on here yet and by definition therefore never bought anything on the SM either..thanks The buyers will likely be a non taxpayer or buying into his/her ISA. Try a £25 sell and buy as a test.
|
|
rogerthat
Member of DD Central
Posts: 2,048
Likes: 1,994
|
Post by rogerthat on Dec 5, 2017 18:14:02 GMT
Ok...a slaphead question probably..but are you saying that if I sold (or attempted to sell my entire portfolio, those being with at least 30days left of the loan term) I would avoid any tax liabilities to date on those sold..If so, and the tax liability is then on the buyer for the entire 6 months period, what financial benefit can the buyer possibly accrue..As you can probably tell ive never sold anything on here yet and by definition therefore never bought anything on the SM either..thanks The buyers will likely be a non taxpayer or buying into his/her ISA. Try a £25 sell and buy as a test. I will give the sell a try when I can pluck up courage  ..but my IFISA is full...when I enlisted I tried to fill that 1st before the MA
|
|
number5
Member of DD Central
Posts: 449
Likes: 98
|
Post by number5 on Dec 5, 2017 18:34:01 GMT
Currently I have maxed the IFISA but I have been selling on there and then reinvesting....so technically I will have over the ISA allowance in there evebtually. But that is generated from interest and premiums.
That is fine right? Because I have not added new funds
|
|
r00lish67
Member of DD Central
Posts: 2,692
Likes: 4,048
|
Post by r00lish67 on Dec 5, 2017 20:01:35 GMT
The buyers will likely be a non taxpayer or buying into his/her ISA. Try a £25 sell and buy as a test. I will give the sell a try when I can pluck up courage ..but my IFISA is full...when I enlisted I tried to fill that 1st before the MA Yep, it is true, one of the little intricacies of the FS SM. Before the ISA came about, there were regularly discounts of 1.5%-2%, but it was then only niche non-taxpayers or companies that could take advantage. I say 'take advantage' but you do rather quickly learn with FS that buying loans with 31 days remaining at minor discounts isn't necessarily a way to make your fortune...
|
|
r00lish67
Member of DD Central
Posts: 2,692
Likes: 4,048
|
Post by r00lish67 on Dec 6, 2017 11:08:40 GMT
Only very attractive loans will sell at par quickly. I'd recommend you check each of the loans you wish to sell on the SM and see what the current best offer is (i.e. the lowest premium/highest discount) Then set yours at at least 0.1% below that to put yourself at the top of the queue. Depending on how quickly you really need it and just plain luck, you may need to apply a greater discount than that. FWIW, it's not a bad time to sell as the highest discount is only -0.5% for any loan. Hope that helps. Edit: To answer your specific question, yes, if you manage to sell something at par you'll receive the advertised rate of interest you've accrued to date. You'll also avoid any tax liability you may or may not have for the interest you're paid (N/A if it's an ISA part sale). So if I sell a loan and avoid tax liability on the interest Ive earned on it - that will be reflected in my FS tax statement? The FS tax statement only updates when a loan that you're in possession of completes, renews, or defaults. It doesn't record accrued interest to date, so you won't see a difference before and after any sale as such, but the consequence is that the part you just sold will no longer ever arrive on the tax statement as it now belongs to someone else. Not sure if I've explained that very well, hope it helps Edit: crossed with ⛄️ (lol) - the SM sales bit is recorded on the account information section under the earnings to date tab. Edit2: ⛄️ deleted her post - she must have melted
|
|
IFISAcava
Member of DD Central
Posts: 3,692
Likes: 3,018
|
Post by IFISAcava on Dec 6, 2017 11:11:37 GMT
Only very attractive loans will sell at par quickly. I'd recommend you check each of the loans you wish to sell on the SM and see what the current best offer is (i.e. the lowest premium/highest discount) Then set yours at at least 0.1% below that to put yourself at the top of the queue. Depending on how quickly you really need it and just plain luck, you may need to apply a greater discount than that. FWIW, it's not a bad time to sell as the highest discount is only -0.5% for any loan. Hope that helps. Edit: To answer your specific question, yes, if you manage to sell something at par you'll receive the advertised rate of interest you've accrued to date. You'll also avoid any tax liability you may or may not have for the interest you're paid (N/A if it's an ISA part sale). So if I sell a loan and avoid tax liability on the interest Ive earned on it - that will be reflected in my FS tax statement? Yes - won't be added to interest total, instead goes onto secondary market gain total (which is liable for CGT if you pay it)
|
|
IFISAcava
Member of DD Central
Posts: 3,692
Likes: 3,018
|
Post by IFISAcava on Dec 6, 2017 11:14:25 GMT
Currently I have maxed the IFISA but I have been selling on there and then reinvesting....so technically I will have over the ISA allowance in there evebtually. But that is generated from interest and premiums. That is fine right? Because I have not added new funds Yes. Only thing that matters is subscriptions i.e. new money paid in
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Dec 7, 2017 14:02:48 GMT
So if I sell a loan and avoid tax liability on the interest Ive earned on it - that will be reflected in my FS tax statement? Yes - won't be added to interest total, instead goes onto secondary market gain total (which is liable for CGT if you pay it) : Are you sure about the CGT? I thought we had been told that SM sales didn't cause a CGT liability because FS loans are considered to be 'simple debts' where special rules apply, though I think that advantage applies only if the part sold was an investment made in the loan at the time it was first offered rather than one bought on the SM. Plenty of fodder for tax advisers here!
|
|
number5
Member of DD Central
Posts: 449
Likes: 98
|
Post by number5 on Dec 7, 2017 14:11:10 GMT
SM seems to have slowed down cobsiderably this week.
Not much is selling even though being top of the pile in a lot of them.
Last week it was flying!
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Dec 7, 2017 14:17:53 GMT
SM seems to have slowed down cobsiderably this week. Not much is selling even though being top of the pile in a lot of them. Last week it was flying! Last week there wasn't much available on the PM.
|
|
number5
Member of DD Central
Posts: 449
Likes: 98
|
Post by number5 on Dec 7, 2017 14:21:15 GMT
SM seems to have slowed down cobsiderably this week. Not much is selling even though being top of the pile in a lot of them. Last week it was flying! Last week there wasn't much available on the PM. Hoping for another quiet week again shortly...
|
|
IFISAcava
Member of DD Central
Posts: 3,692
Likes: 3,018
|
Post by IFISAcava on Dec 7, 2017 15:14:27 GMT
Yes - won't be added to interest total, instead goes onto secondary market gain total (which is liable for CGT if you pay it) : Are you sure about the CGT? I thought we had been told that SM sales didn't cause a CGT liability because FS loans are considered to be 'simple debts' where special rules apply, though I think that advantage applies only if the part sold was an investment made in the loan at the time it was first offered rather than one bought on the SM. Plenty of fodder for tax advisers here! I think that is probably the case yes, ABLRate had the best description, but were clear that it wasn't advice and would need specialist tax advice.
|
|
..but my IFISA is full...when I enlisted I tried to fill that 1st before the MA