capucino
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Post by capucino on Jul 19, 2018 15:10:18 GMT
Can it be used to offset tax on interest from p2p loans?
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IFISAcava
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Post by IFISAcava on Jul 19, 2018 15:16:18 GMT
Can it be used to offset tax on interest from p2p loans? no, unless it was originally bought on the SM, in which case it can offset any capital gains from buying and selling on the SM. As far as I understand it, gains from selling loans originally bought on the PM at a premium are not taxable as it counts as simple debt (and hence losses for selling at a discount are not tax deductible)
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cb25
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Post by cb25 on Jul 19, 2018 15:18:58 GMT
Can it be used to offset tax on interest from p2p loans? I doubt it, as it's not a bad debt (which I believe is the limit of the current offsetting rules), rather a good debt you chose to sell at less than face value.
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capucino
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Post by capucino on Jul 19, 2018 15:44:12 GMT
Is underwriting fee / cash back taxable though?
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cb25
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Post by cb25 on Jul 20, 2018 9:07:13 GMT
Is underwriting fee / cash back taxable though? With regard to cashback/bonus money, if it appears on the Tax Statement provided by the P2P platform I declare it as income (interest) to HRMC.
The only P2P platform that I use that shows fees is FC (at 1%). I don't treat them as tax deductible, e.g. if I earn £1000 interest with £100 fees, I declare £1000 rather than £900. (Have to declare here that I use an accountant and it's his view these fees aren't deductible).
FC fees would seem to come into this category on the above article
"Are peer-to-peer lending fees tax deductible?
On any interest earned over our tax-free limits, we're taxed on any lending fees that the peer-to-peer lending platforms charge directly to us lenders.
However, most platforms don't charge direct lending fees. They might charge variants like “loan servicing fees”, but these are tax deductible.
For the platforms that still charge direct lending fees, if you earn 6% interest and pay a 1% fee, you’ll have earned 5% after fees. But you'll still have to pay tax on 6% interest."
You could always ask HMRC if you have specific questions.
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