pom
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Post by pom on Aug 13, 2018 20:50:18 GMT
I can't think of many loans that would qualify as I think everything I hold on ABL is debt linked to a security, so not classed as simple debt Unless you also trade a lot of shares or artwork you're unlikely to go over the CGT allowance anyway I believe most (if not all) loans on P2P platforms are simple debts. Debts on a security (which are generally chargeable to CGT) refer to debts securities which are of fixed amounts, fixed maturities and usually specific rate of interest, eg bonds and commercial paper that are issued on a formal securitised basis ( www.gov.uk/government/publications/debts-and-capital-gains-tax-hs296-self-assessment-helpsheet/hs296-debts-and-capital-gains-tax-2016 ). Even then many bonds are qualifying corporate bonds which takes them out of CGT, eg bonds traded on LSE's orb market are not subject to CGT. Really suggest you read the FAQ as recommended by steviowww.ablrate.com/faq/what-is-the-tax-position/
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nick
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Post by nick on Aug 13, 2018 22:49:39 GMT
Thanks for the link to the FAQ - it has been a while since I last read it. The problem with the FAQ is that they themselves are not sure whether the debt is simple or a security - 2nd para in the FAQ "Loans on Ablrate are Loans made by Individual Lending Members to companies and as such may fall under the definition of “Securities........”. The rest of the FAQ on accounting for accrued interest by the AIS and CGT treatment is then based on the premise that the debts are securities over which there is uncertainty (I'm not convinced they are securities). However, they do seem to have taken the view that they are securities and should be treated as such notwithstanding their qualification on definition and their view should probably be followed absent obtaining individual tax advice. I hadn't intended to cause confusion on the issue. This uncertainty over whether these type of debts are securities is clearly evident when looking at the different suggested treatments across the various platforms - ask two different tax accountants and you probably get two different answers...
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stevio
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Post by stevio on Aug 14, 2018 5:48:54 GMT
Thanks for the link to the FAQ - it has been a while since I last read it. The problem with the FAQ is that they themselves are not sure whether the debt is simple or a security - 2nd para in the FAQ "Loans on Ablrate are Loans made by Individual Lending Members to companies and as such may fall under the definition of “Securities........”. The rest of the FAQ on accounting for accrued interest by the AIS and CGT treatment is then based on the premise that the debts are securities over which there is uncertainty (I'm not convinced they are securities). However, they do seem to have taken the view that they are securities and should be treated as such notwithstanding their qualification on definition and their view should probably be followed absent obtaining individual tax advice. I hadn't intended to cause confusion on the issue. This uncertainty over whether these type of debts are securities is clearly evident when looking at the different suggested treatments across the various platforms - ask two different tax accountants and you probably get two different answers... I dont think HMRC will argue much, if you have gone so far as to seek, understand and implement the platforms guidance, which is a huge amount more than the majority of investors, platforms and investments
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pom
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Post by pom on Aug 14, 2018 7:02:40 GMT
Thanks for the link to the FAQ - it has been a while since I last read it. The problem with the FAQ is that they themselves are not sure whether the debt is simple or a security - 2nd para in the FAQ "Loans on Ablrate are Loans made by Individual Lending Members to companies and as such may fall under the definition of “Securities........”. The rest of the FAQ on accounting for accrued interest by the AIS and CGT treatment is then based on the premise that the debts are securities over which there is uncertainty (I'm not convinced they are securities). However, they do seem to have taken the view that they are securities and should be treated as such notwithstanding their qualification on definition and their view should probably be followed absent obtaining individual tax advice. I hadn't intended to cause confusion on the issue. This uncertainty over whether these type of debts are securities is clearly evident when looking at the different suggested treatments across the various platforms - ask two different tax accountants and you probably get two different answers... Yep - unless the your numbers are sufficiently large for it to be worth paying for expert advice I think best to stick with the platform advice, even tho it does take me a few hours to work it all out...
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