Filling in the tax return

Sorry k6 , I'd love to publicise a name or three but such things have a habit of coming back and biting one's bottom, no matter how many "Warnings" and caveats I might attach.

EDIT: Yes, fair point Greenwood2.  

What does that mean?

As Ace said, what one is allowed to earn without paying tax. The strange term "starting rate for savings" means a value that one is allowed to earn from savings interest (and I think p2p for this purpose, based on my understanding of .gov.uk info), between this £12,500 and £17,500. Illustrations given here: www.gov.uk/apply-tax-free-interest-on-savings

thank you. I previously had to claim it when on PAYE and they sent me a check and then redacted that without saying why so now they owe me. so that's made me nervous about the situ

Not sure what you mean by the box - do you mean when personalising your return saying yes to other income so that section appears. I would say yes so that HMRC dont think youre just ignoring it as they should have returns from the platform declaring it so might flag.

If you have more losses than income then you can carry forward the relief, seem to be some discussion on another thread whether you should just enter zero or a negative in the gross P2P (ie gilts, discounted securities) income box. Whatever you do I would suggest putting a note to say that your losses are greater than income and therefore your are carrying x amount forward. Keep records.

Yes, just putting income and not losses is possible  (Ive done it before) but again put a note to say you havent claimed loss relief so that HMRC know in future years that you wont be declaring any recoveries for those loans. Again keep records.

Usual caveats on advice etc.

*** LATEST UK P2P TAX TREATMENT***

Its closing in on that time of year again, so I just wanted to clarify MY understanding of UK P2P tax in one place. Various parts of this thread use terms like ‘P2P losses’ which is not clear enough to me (does that mean Income, Capital etc.). So, I am just trying to post in once place and am happy to update / expand this if needed.


Interest


Transfers

P2P Secondary market transfers give rise to Capital Gains or Losses and are therefore subject to CGT rules (in the same way as other assets would be e.g. shares), but only if the loan was bought and sold in the SM. I.e.

i. If a Secondary market buyer sells later in the SM, this will give rise to a capital gain or loss

ii. If a PRIMARY market buyer (original lender) sells later in the SM, this will NOT give rise to a capital gain or loss

Funding circle seem to confirm this: support.fundingcircle.com/hc/en-us/articles/214636966-What-are-the-tax-consequences-of-lending-as-an-individual-

The only thing I can see from HMRC which vaguely confirms this is:
“Once a debt has been assigned to some other person - by way of sale, or other transfer - a gain on a disposal of the debt by that person, or any subsequent holder of the debt, will be a chargeable gain”.
“A loss on a disposal of the debt will be allowable, unless the person making the disposal is connected with the original creditor”

www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg53480



Much of the above seems to just seems to disadvantage primary market lenders as much as possible e.g.
1) I get relief if a loan defaults, but not if I sell the loan at a discount instead
2) Negative rates eg. from LW cannot be carried back to offset against positive income in the past.
Only forward (when you may have closed down your P2P accounts and therefore cannot use the relief!)

But anyway, does anyone disagree with my assessment of the tax treatment?


Thanks


(Disclaimer: NONE of the above is tax advice)