Lendy 'distressed' loans & loss relief

excuse my ignorance but does this mean I can (try to) offset my interest against my current holding in the suspended DFL017

Thanks. Forgot to add that clearly.

You have to try & interprete the Lendy speak as there are a lot of aspirations & intentions. I've tried to pick the update that is in the 'done' tense rather the 'doing' tense but happy to consider alternative suggestions.

I don't believe Lendy (or any other platform) report any loss figures to HMRC.  It is for individuals to elect (or not) to net qualifying losses against income or to default to treating them as capital losses.  However, I agree it would be useful for Lendy to give a schedule of loans that could qualify for loss relief and write-backs from previous periods as they best placed in terms of info in making such a determination and would save us a lot of work attempting to do it ourselves.


classify

The point I trying to make is that claiming loss relief against income is an individual choice and one that needs to be chosen by the individual (by providing a net income figure in their tax return).  If loss relief against income is not elected, then the loss should be reported as a capital loss which can be set against capital gains.  Thus the treatment of losses and affect on income or capital gains is a choice determined by the individual (although current tax rates make it favourable to claim relief against income versus capital gains in most situations).

In addition, P2P income is reported in aggregate with other various other interest (gilt-edged and other uk securities, deeply discounted securities and accrued income profits) and not as a standalone amount in self assessment returns. 

For these reason net income figures reported by platforms will not necessarily tie back to amounts reported in self assessment tax returns.  HMRC use the gross interest figures reported by platforms in the first instance as a reasonableness check to gauge whether income figures reported in self assessment return are complete and not immaterially understated rather than expect figures to tie back precisely unlike PAYE and pension figures which should tie back to the penny.

Whilst there is no legal requirement for platforms to provide interest and eligible loss figures for each tax year and the potential timing issue of assessing whether loans are irrecoverable, their provision obviously makes it a lot easier for lenders to complete their tax returns without having to analyse the underlying data themselves and provides strong support for figures reported in tax returns should a query ever be raised by HMRC. 

Thank you for this most useful table.

As an aside one of the posters above mentions using the capital losses to back claim against p2p tax paid in previous years. I thought losses could only be used in the year of loss or carried forward (for 4 years?) and used against future p2p interest income. What is permitted here?

The carry forward rule also raises another question. If a loan failure is established in one year then do you have the freedom during 4 years to offset it as you wish either against p2p interest or a capital gain? Also after 4 years can you then still record unused losses as a capital gain loss to be used in any future year thereafter?

Talking of which, has Liam ever run anything the size and complexity of Lendy, or even half the size of Lendy previously in his life? What experience does he have??