mj87
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Post by mj87 on May 26, 2019 13:06:42 GMT
Hello,
When I downloaded my Tax statement from Lendy - there was no loan loss.
How are people calculating loan loss for previous years?
Are we allowed to claim lost interest or just capital?
Thanks in advance.
A
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sydb
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Post by sydb on May 26, 2019 13:47:18 GMT
Hello, When I downloaded my Tax statement from Lendy - there was no loan loss. How are people calculating loan loss for previous years? Are we allowed to claim lost interest or just capital? Thanks in advance. A Please read from the beginning of the thread. Essentially the onus is on you to decide when you think an investment should be declared as a loss as per your interpretation of HMRC rules/guidelines. Interest not paid is not loss, it is just a lack of interest. If you never had it, you haven't lost it.
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bg
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Post by bg on May 26, 2019 13:54:03 GMT
Personally, when it comes to my 19/20 tax return I will be claiming tax relief on any remaining Lendy balance I have (which I imagine will be exactly what the balance is now). Given all my loans are now long overdue and Lendy has gone into administration they have all hit my threshold of being irrecoverable.
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sydb
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Post by sydb on May 26, 2019 13:57:22 GMT
Personally, when it comes to my 19/20 tax return I will be claiming tax relief on any remaining Lendy balance I have (which I imagine will be exactly what the balance is now). Given all my loans are now long overdue and Lendy has gone into administration they have all hit my threshold of being irrecoverable. Sounds sensible to me but I am not HMRC. Just also remember to declare any taxable income for the year that is part of that balance (I can't imagine it will be much), as per the tax statement from Lendy.
Another topical thread:
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hazellend
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Post by hazellend on May 26, 2019 19:39:37 GMT
Tax strategy question:
For 18/19 I have 22k P2P interest and no other income other than some dividends.
I want to offset 3.5k of losses to get down to 18.5k p2p income so no tax is due (tax free allowance + starting rate for savings + personal savings allowance)
I will probably want to offset similar losses next year.
My current loans with Lendy are (41k total):
DFL3 Hudd block B £2924
DFL4 Wolfie £3680
DFL5 Arb Holiday £1863
DFL6 Welsh Stud £10000
DFL12 HQ £5000
DFL13 Brad Stud £5000
DFL19 Sheds £5000
DFL20 Car Park £4000
PBL199 Cardiff £3436
Obviously total losses are likely to be more than 3.5k so I'd like to try and optimise the tax benefits.
What would you offset for last tax year?
Looking forwards, any guesses as to which might come in useful this tax year for a similar or up to double amount and then again the year after?
Ultimately, I am looking to get out of P2P and add it all to my equity portfolio, but I want to do it sensibly.
Thanks!
PS, would like to keep it simple and offset whole loans and then add back any successful recoveries
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delboy
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Post by delboy on May 26, 2019 19:51:08 GMT
Would I be right in thinking that it could be a sensible strategy to now shift some non-ISA, non-P2P investments (standard equity investments) over to P2P this financial year so that any tax can be offset against Lendy capital losses? I have moved out of P2P and into equities over the last year or so (except for a significant sum locked up in Lendy) but now wondering whether it is worth reversing this. Seems logical but perhaps unethical?
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hazellend
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Post by hazellend on May 26, 2019 19:53:57 GMT
Would I be right in thinking that it could be a sensible strategy to now shift some non-ISA, non-P2P investments (standard equity investments) over to P2P this financial year so that any tax can be offset against Lendy capital losses? I have moved out of P2P and into equities over the last year or so (except for a significant sum locked up in Lendy) but now wondering whether it is worth reversing this. Seems logical but perhaps unethical? I don't think it is unethical at all. The same thought did occur to me but making big moves in asset allocation usually doesn't work out very well for me. I have been considering selling non ISA equities to harvest some capital gains anyway so might still do this.
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Greenwood2
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Post by Greenwood2 on May 27, 2019 6:07:53 GMT
Would I be right in thinking that it could be a sensible strategy to now shift some non-ISA, non-P2P investments (standard equity investments) over to P2P this financial year so that any tax can be offset against Lendy capital losses? I have moved out of P2P and into equities over the last year or so (except for a significant sum locked up in Lendy) but now wondering whether it is worth reversing this. Seems logical but perhaps unethical? Just be very careful which platforms you use, out of the frying pan into the fire?
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hazellend
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Post by hazellend on May 27, 2019 6:25:22 GMT
Would I be right in thinking that it could be a sensible strategy to now shift some non-ISA, non-P2P investments (standard equity investments) over to P2P this financial year so that any tax can be offset against Lendy capital losses? I have moved out of P2P and into equities over the last year or so (except for a significant sum locked up in Lendy) but now wondering whether it is worth reversing this. Seems logical but perhaps unethical? Just be very careful which platforms you use, out of the frying pan into the fire? Exactly
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Mucho P2P
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Post by Mucho P2P on May 27, 2019 7:04:52 GMT
Would I be right in thinking that it could be a sensible strategy to now shift some non-ISA, non-P2P investments (standard equity investments) over to P2P this financial year so that any tax can be offset against Lendy capital losses? I have moved out of P2P and into equities over the last year or so (except for a significant sum locked up in Lendy) but now wondering whether it is worth reversing this. Seems logical but perhaps unethical? Always stay well diversified. If the "shifting" amounts to loosing diversification, I would think twice about such a move.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on May 27, 2019 7:18:24 GMT
Would I be right in thinking that it could be a sensible strategy to now shift some non-ISA, non-P2P investments (standard equity investments) over to P2P this financial year so that any tax can be offset against Lendy capital losses? I have moved out of P2P and into equities over the last year or so (except for a significant sum locked up in Lendy) but now wondering whether it is worth reversing this. Seems logical but perhaps unethical? Don't let the tax tail wag the investment dog. Better to make a gain and pay some tax than to make a loss.
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Yintara
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Post by Yintara on May 27, 2019 9:43:25 GMT
Would I be right in thinking that it could be a sensible strategy to now shift some non-ISA, non-P2P investments (standard equity investments) over to P2P this financial year so that any tax can be offset against Lendy capital losses? I have moved out of P2P and into equities over the last year or so (except for a significant sum locked up in Lendy) but now wondering whether it is worth reversing this. Seems logical but perhaps unethical? I had the same thought but also consider the risk to be much higher. If the fallout from Lendy recoveries doesn’t go well then it could have a major impact on the entire P2P industry, and possibly wider. I don’t want to be over exposed to P2P when the next recession hits. On a different note, does anyone know how any Lendy losses would be affected if someone was lending through a Ltd company? Can they be offset against trading profits?
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Monetus
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Post by Monetus on May 27, 2019 9:52:11 GMT
Generally yes they can so you’d be able to reduce Corporation Tax payable for the year but definitely speak to your accountant to confirm.
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Post by wotnot on Jun 9, 2019 12:04:53 GMT
I would certianly seek advice on claiming losses against CGT as the SAIM 12210 appears to remove that as an option For avoidance of doubt I presume there is consensus that bad debt from P2P cannot be offset against capital gains? That seems to be the case and I would agree with the above based on SAIM 12210. If anyone thinks otherwise, please shout. (Any input, of course, not construed as formal tax advice.)
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Jun 9, 2019 13:10:52 GMT
Any outstanding amount of the principal
(capital) of a loan made at any time has, on
or after 6 April 2015, become irrecoverable.
This is the sticking point Lendy rarely if ever defaulted a loan, All their loans are currently in the hands of their recovery team.
If the loans are actively managed it would be reasonable for HMRC to deny a request to have them considered unrecoverable as is required
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