ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 2, 2018 22:14:39 GMT
I had a 5 figure sun in COL. For tax return do I report the full amount as a total loss? I doubt it. Collateral is only the agent not the borrower or the holder of the security. You havent lent them any money and none of the security is in legal recovery so doesnt qualify for relief AIUI. However, you would need to get clarification for a professional or HMRC.
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mason
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Post by mason on Mar 2, 2018 22:20:53 GMT
I had a 5 figure sun in COL. For tax return do I report the full amount as a total loss? I believe this has also been stated elsewhere, but there is no reason to think that the platform (while under administration) won't be reporting to HMRC and issuing tax statements as it did for the prior tax year. What can be reported as a loss on your tax return for 2017/18 will depend on the situation at the end of the tax year.
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Post by martin44 on Mar 2, 2018 22:37:16 GMT
I had a 5 figure sun in COL. For tax return do I report the full amount as a total loss? From past experience (fundingsecure and a scottish boatyard) after conversation's with hmrc .IF....either the platform declares it a loss. or the platform goes into administration, then you should declare it a loss also, and claim any tax relief/offset as though it is a total loss... should there be any recovery of capitol in future tax years, then you should declare the recoveries and any tax due should then be paid. Not advice , as i'm sure you will recognise, but a snippet of info as to what the hmrc advised me.
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Post by beepbeepimajeep on Mar 2, 2018 23:03:59 GMT
I will be getting (paying!) a professional to advise me on the tax situation with regards to all of this. Anyway it's not even the end of this tax year yet so there should hopefully be a lot more clarity before we get to the stage of submitting returns.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 2, 2018 23:34:21 GMT
There is an issue here which I hadnt considered. For a loan to be eligible for tax relief it has to be made through a regulated peer to peer platform
Bit of a can of worms that one
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stub8535
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Post by stub8535 on Mar 2, 2018 23:39:03 GMT
There is an issue here which I hadnt considered. For a loan to be eligible for tax relief it has to be made through a regulated peer to peer platform Bit of a can of worms that one Were all the loans not in that category when made? Anything made since end January could be an issue as you say ilmoro
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Post by beepbeepimajeep on Mar 2, 2018 23:40:29 GMT
There is an issue here which I hadnt considered. For a loan to be eligible for tax relief it has to be made through a regulated peer to peer platform Bit of a can of worms that one That is an excellent point. What if I purchased loan parts on the secondary market during February? All the more reason to take professional advice when the time rolls around.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 3, 2018 0:02:41 GMT
There is an issue here which I hadnt considered. For a loan to be eligible for tax relief it has to be made through a regulated peer to peer platform Bit of a can of worms that one Were all the loans not in that category when made? Anything made since end January could be an issue as you say ilmoro Depends. We are making the assumption that Jan 18 is significant but it might be they never had the right permissions. The administrator letter certainly implies it could be the latter.
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stub8535
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Post by stub8535 on Mar 3, 2018 0:09:36 GMT
Were all the loans not in that category when made? Anything made since end January could be an issue as you say ilmoro Depends. We are making the assumption that Jan 18 is significant but it might be they never had the right permissions. The administrator letter certainly implies it could be the latter. I am with what you are saying now. Thanks for clarifying.
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Post by charliebrown on Mar 3, 2018 2:04:51 GMT
I still don’t understand why FCA would do this. Wouldn’t it be better to either insist on accreditation BEFORE a platform is allowed to trade or have issued warnings to COL and got them to do what they need to do to get accreditation. By pulling the rug out from under our feet whilst there’s millions of pounds out on loan who does that benefit? Who are they trying to protect and from what? Apart from the administrator and maybe the borrowers, who might see this confusion as a good opportunity to default their loans, there are no winners here AFAICS.
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mason
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Post by mason on Mar 3, 2018 7:24:03 GMT
I still don’t understand why FCA would do this. Wouldn’t it be better to either insist on accreditation BEFORE a platform is allowed to trade or have issued warnings to COL and got them to do what they need to do to get accreditation. By pulling the rug out from under our feet whilst there’s millions of pounds out on loan who does that benefit? Who are they trying to protect and from what? Apart from the administrator and maybe the borrowers, who might see this confusion as a good opportunity to default their loans, there are no winners here AFAICS. The platforms operating on interim permissions were authorised before they started trading. It was just that they were authorised by the OFT and a change in regulation meant that they later fell under regulation by the FCA. It would have been chaos if all such companies had to cease trading until the FCA had reauthorised each of them. As it transpired, the FCA were extremely slow in authorising any of them. The process was supposed to be finished by April 2016 and now in March 2018 there are still platforms (e.g. Lendy) that are not yet fully authorised.
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Post by charliebrown on Mar 3, 2018 7:37:58 GMT
Shutting COL down can’t be the right course of action, can it? And does this mean Lendy could also be forced into administration very soon? It’s nigh on impossible to get money out of Lendy, so where does that leave us. I’m really worried about all this. I was able to accept the Lending risk but it seems the greater risk for a total loss comes from the FCA shutting down all the platforms. Ironic since the FCA is supposed to be there to protect us in some way, not financially ruin us.
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jj
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Post by jj on Mar 3, 2018 8:01:42 GMT
Shutting COL down can’t be the right course of action, can it? And does this mean Lendy could also be forced into administration very soon? It’s nigh on impossible to get money out of Lendy, so where does that leave us. I’m really worried about all this. I was able to accept the Lending risk but it seems the greater risk for a total loss comes from the FCA shutting down all the platforms. Ironic since the FCA is supposed to be there to protect us in some way, not financially ruin us. My guess is the FCA is setting an example here. I think there are many P2P platforms in the same way. By doing this the FCA may have indeed protected us in the long term. I am pretty sure that COL had warnings along the way. The above is only an opinion.
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mason
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Post by mason on Mar 3, 2018 8:06:47 GMT
Shutting COL down can’t be the right course of action, can it? And does this mean Lendy could also be forced into administration very soon? It’s nigh on impossible to get money out of Lendy, so where does that leave us. I’m really worried about all this. I was able to accept the Lending risk but it seems the greater risk for a total loss comes from the FCA shutting down all the platforms. Ironic since the FCA is supposed to be there to protect us in some way, not financially ruin us. We don't know the reason for the decision yet (and might never know). It might have been in our best interests. Even fully authorised P2P platforms could be subject to enforcement action in the future. We also don't know what the outcome of COL entering administration will be. If it results in an orderly wind-down of the loan book and return of cash and proceeds, then it might be a better outcome than letting COL continue operating as it was prior to the lapse of permissions.
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upland
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Post by upland on Mar 3, 2018 9:12:00 GMT
My guess is the FCA is setting an example here. I think there are many P2P platforms in the same way. By doing this the FCA may have indeed protected us in the long term. I feel that too , may not be all bad.
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