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Post by supernumerary on Apr 10, 2018 14:53:37 GMT
That is a 'great turn of phrase'; "Way I see it if we haven't actually received it then it's accrued at best..."TBH, I think that is the best way of viewing it at the moment. I believe the official position is that income is treated as being received in the tax year it is paid and made available to the beneficiary. So it would seem fairly clear that February and March's interest (if paid at all) would fall into this tax year. I therefore wouldn't add anything on for Feb/Mar in an estimated figure for the 2017/18 tax year. Thanks for that added reassurance (My bold and colouring of your relevant clarification).
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blender
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Post by blender on Apr 10, 2018 16:08:08 GMT
Tricky. If it's in a client account with your name on the account, is that not received? I am not sure that HMRC would be concerned with the arrangements for you to see the account and make withdrawals. For an off-line system you might await a notification of the balance at year end. This is now an off-line account.
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mason
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Post by mason on Apr 10, 2018 17:36:01 GMT
Tricky. If it's in a client account with your name on the account, is that not received? I am not sure that HMRC would be concerned with the arrangements for you to see the account and make withdrawals. For an off-line system you might await a notification of the balance at year end. This is now an off-line account. COL indicated to RR that the FCA was preventing the Feb interest payment being made and this was the principal reason for entering administration ("interest payments were becoming due and they were unaware if they were able to pay these as normal due to the restrictions being enforced by the FCA ... the Directors advised that the Group was unable to pay its debts when they fell due and consequently was insolvent"). This could be clarified by RR, but there is no indication that the interest run was performed for February or March. I expect RR would be willing to share this information. I agree though, without such clarification, only an estimated figure could be entered into a tax return, with the most reasonable figure appearing to be interest up to the end of January. I don't believe anyone can submit a return based on the information we currently have without ticking the box that says it contains estimated figures. Edit: Or perhaps RR has been completely silenced now that the FCA has published a statement as per star dust's post
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greatmarko
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Post by greatmarko on Apr 11, 2018 11:14:26 GMT
Tricky. If it's in a client account with your name on the account, is that not received? Speaking informally with a tax advisor on this, his take was that it all depends upon whether COL's client account was a "pooled" account (i.e. all client money is pooled together and not separated out into individual clients within the account itself), or "segregated" (i.e. each client's funds are held separately from other investor's funds within the same client account wrapper).
His view (assuming that you've not withdrawn any of your interest from the platform in the last financial year and so its all still sat there in COL's client account) was basically:
if their client account was "pooled" then your interest hasn't been "received" by you yet whilst the company is in administration and we're not receiving any statements/access to the platform, etc, or;
- If their client account was "segregated" then for the purposes of tax you have "received" your interest (even though you don't have any access it right now)
Again, he did admit though that it was a bit of a "grey" area given the circumstances.
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Post by brightspark on Apr 12, 2018 19:21:16 GMT
If investors/lenders are creditors of Col in administration does that mean that the entire 'lost' investment can offset income tax due for the 2017-2018 tax year?
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mason
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Post by mason on Apr 12, 2018 20:32:29 GMT
If investors/lenders are creditors of Col in administration does that mean that the entire 'lost' investment can offset income tax due for the 2017-2018 tax year? No, you can only offset losses from Authorised P2P firms. There will be no offsetting of COL losses against income.
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fasty
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Post by fasty on Apr 12, 2018 20:44:40 GMT
If investors/lenders are creditors of Col in administration does that mean that the entire 'lost' investment can offset income tax due for the 2017-2018 tax year? Hmm well if Collateral was not a regulated P2P platform then the HMRC rules on income tax relief do not seem to apply (SAIM 12030 section 2), so maybe it is not valid to offset losses against other P2P gains.
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Post by brightspark on Apr 13, 2018 14:16:53 GMT
thanks for the reference to the legislation/advice notes. The tax man does seem to have tied that one up in good time and very tidily. Almost as though they wrote the rules with Col in mind.
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mason
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Post by mason on Apr 13, 2018 17:21:55 GMT
thanks for the reference to the legislation/advice notes. The tax man does seem to have tied that one up in good time and very tidily. Almost as though they wrote the rules with Col in mind. There has been both legal and illegal unregulated lending going since before COL entered the frame. HMRC will no doubt have an awareness of this.
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