j1
Posts: 61 
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Post by j1 on Jun 3, 2018 9:54:26 GMT
I have money sitting I FS that I want to lend out so I am looking at the secondary market to give me a boost.
I normally try and sell just before term to avoid the income tax.
So what's the deal with capital gains if I buy and sell the same loan? Does it matter on the discount / premium the loan was being offered for?
Thanks!
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SteveT
Member of DD Central
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Post by SteveT on Jun 3, 2018 10:11:48 GMT
It’s no longer a simple debt and gains become taxable, IIRC
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Post by solicitorious on Jun 3, 2018 11:08:04 GMT
It’s no longer a simple debt and gains become taxable, IIRC And you have an annual CGT allowance to offset against such taxable gains... You may not even have to declare it, if the gains are under the limit. Or you might have to, depending on other capital disposals you may have made that year. p2pindependentforum.com/post/250894
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archie
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Post by archie on Jun 3, 2018 11:36:22 GMT
Funding Secure have a page covering taxation on the sm here. |
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j1
Posts: 61
Likes: 20
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Post by j1 on Jun 3, 2018 12:59:52 GMT
Solicitorous, I don't seem to have permissions on that link...
All,
So am I right in thinking I would be liable for double taxation? Income and cgt on the same amount?
"You may not have to declare it.. "
I would rather not have to...
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Post by solicitorious on Jun 3, 2018 13:16:17 GMT
Solicitorous, I don't seem to have permissions on that link... All, So am I right in thinking I would be liable for double taxation? Income and cgt on the same amount? "You may not have to declare it.. " I would rather not have to... Don't know why you're not getting the link. Here's the relevant post with the HMRC link explaining what I was trying to say... 4. If you resell via the SM a loan purchased on the SM from a non-ISA account you are creating a chargeable capital gain that can be offset against the annual CGT allowance (currently £11,300 pa). But unless you are close to the annual CGT limit you don't need to worry about this - only have to declare CGT data on self assessment if over the limit. Or if your total sales of capital assets, including anything both bought and sold on, for example, the FS SM, exceed 4 * the annual allowance, which equals £45,200 for the current tax year. [Applies if you are registered for Self-Assessment - not sure of the position if you're not !] www.gov.uk/capital-gains-tax/work-out-need-to-pay
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