ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Feb 6, 2023 18:24:18 GMT
Not sure if I am doing something wrong but I can’t seem to access the link. Does this action delay our additional payment(s)? Will it require that we risk more of our own money? Could it lead to getting additional money on top of the sale of HR minus costs? The linked post is in the DD section which you need to request access to (see here) No. Nothing additional but there are potential costs if it is unsuccessful which will likely come from retained funds reducing any potential further return of retained funds. Yes as proceeds from third party claims provisionally go to lenders under the agreement on the outstanding issues.
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Post by gaza77 on Mar 31, 2023 18:23:44 GMT
Hi, can anyone put me out of my misery as I have become very confused by what we are and are not entitled to.
I had assumed that after the LAG won the court case last year we would be entitled to the ‘Lendy Contractual Entitlement’ as per the spreadsheet created by MP. This would mean getting a similar amount to the first payout. ->I did think that it was immoral that Lendy were making interest on our money after they went into Admin!
Is this not the case? Can we expect absolutely no more money from DFL017? If not, what was the point of the court case?
Also if we aren’t getting any more money can we get a statement to that fact for closure, especially for tax purposes.
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Post by martin44 on Apr 2, 2023 22:19:31 GMT
Hi, can anyone put me out of my misery as I have become very confused by what we are and are not entitled to. I had assumed that after the LAG won the court case last year we would be entitled to the ‘Lendy Contractual Entitlement’ as per the spreadsheet created by MP. This would mean getting a similar amount to the first payout. ->I did think that it was immoral that Lendy were making interest on our money after they went into Admin! Is this not the case? Can we expect absolutely no more money from DFL017? If not, what was the point of the court case? Also if we aren’t getting any more money can we get a statement to that fact for closure, especially for tax purposes.from my understanding, and my actions, im not rushing to declare the whole thing a loss yet, as lendy pay back, im then declaring on my SA "a loss" year on year.. so where i make a profit elsewhere, i am detailing the losses against those profits and getting relief... if i was to declare the whole thing as a loss in one tax year (~35k for me) which as i understand from my reading it can be declared as a total loss after 12 months in admin. but why write it all of in one year, when it can be spread over multiple years and gain more relief..... im more than happy to be corrected.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,839
Likes: 11,068
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Post by ilmoro on Apr 2, 2023 22:45:00 GMT
Hi, can anyone put me out of my misery as I have become very confused by what we are and are not entitled to. I had assumed that after the LAG won the court case last year we would be entitled to the ‘Lendy Contractual Entitlement’ as per the spreadsheet created by MP. This would mean getting a similar amount to the first payout. ->I did think that it was immoral that Lendy were making interest on our money after they went into Admin! Is this not the case? Can we expect absolutely no more money from DFL017? If not, what was the point of the court case? Also if we aren’t getting any more money can we get a statement to that fact for closure, especially for tax purposes.from my understanding, and my actions, im not rushing to declare the whole thing a loss yet, as lendy pay back, im then declaring on my SA "a loss" year on year.. so where i make a profit elsewhere, i am detailing the losses against those profits and getting relief... if i was to declare the whole thing as a loss in one tax year (~35k for me) which as i understand from my reading it can be declared as a total loss after 12 months in admin. but why write it all of in one year, when it can be spread over multiple years and gain more relief..... im more than happy to be corrected. Losses cannot be declared due to Lendy being in administration ... administration of the platform is not a qualifying criteria for relief. Losses can be claimed when the platform declares the loan as irrecoverable, which Lendy hasnt done. Alternatively lenders can self determine loans as eligible when the loan is in formal legal recovery ie administration, receivers, bankruptcy. Loans to Lendy (M1) do not qualify for loss relief against income, and loans that are in default, but not legal recovery, may also not qualify. The administrators have stated in their reports where loans wont have further recoveries which could be considered as qualifying them for relief under the first criteria, though there may be distributions of funds recovered but retained. Length of time in recovery is irrelevant. I suspect you have to declare loans in the year they become eligible ... you can carry losses forward if you have insufficient P2P income to offset in a year for up to 4 years but I doubt you can claim a loan in a different financial year to when it became eligible. eg for DFL017 it could be claimed in 2017-18 tax year when it entered legal recovery, or it could be claimed when the platform writes it off which has yet to happen due to ongoing recoveries
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,839
Likes: 11,068
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Post by ilmoro on Apr 2, 2023 22:47:51 GMT
Hi, can anyone put me out of my misery as I have become very confused by what we are and are not entitled to. I had assumed that after the LAG won the court case last year we would be entitled to the ‘Lendy Contractual Entitlement’ as per the spreadsheet created by MP. This would mean getting a similar amount to the first payout. ->I did think that it was immoral that Lendy were making interest on our money after they went into Admin! Is this not the case? Can we expect absolutely no more money from DFL017? If not, what was the point of the court case? Also if we aren’t getting any more money can we get a statement to that fact for closure, especially for tax purposes. The expectation is that there will be further funds returned for DFL017. It wont be the full Entitlement as RSM are entitled to hold back a percentage to cover costs/fees as per the agreed Protocol. The final loss wont be fully known until the administration is known as there may be distributions to lenders as creditors. DFL017 qualifies for loss relief in the 2017/18 tax year when it entered legal recovery and then any recovery payments would count as income.
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Post by martin44 on Apr 6, 2023 20:07:05 GMT
from my understanding, and my actions, im not rushing to declare the whole thing a loss yet, as lendy pay back, im then declaring on my SA "a loss" year on year.. so where i make a profit elsewhere, i am detailing the losses against those profits and getting relief... if i was to declare the whole thing as a loss in one tax year (~35k for me) which as i understand from my reading it can be declared as a total loss after 12 months in admin. but why write it all of in one year, when it can be spread over multiple years and gain more relief..... im more than happy to be corrected. Losses cannot be declared due to Lendy being in administration ... administration of the platform is not a qualifying criteria for relief. Losses can be claimed when the platform declares the loan as irrecoverable, which Lendy hasnt done. Alternatively lenders can self determine loans as eligible when the loan is in formal legal recovery ie administration, receivers, bankruptcy. Loans to Lendy (M1) do not qualify for loss relief against income, and loans that are in default, but not legal recovery, may also not qualify. The administrators have stated in their reports where loans wont have further recoveries which could be considered as qualifying them for relief under the first criteria, though there may be distributions of funds recovered but retained. Length of time in recovery is irrelevant. I suspect you have to declare loans in the year they become eligible ... you can carry losses forward if you have insufficient P2P income to offset in a year for up to 4 years but I doubt you can claim a loan in a different financial year to when it became eligible. eg for DFL017 it could be claimed in 2017-18 tax year when it entered legal recovery, or it could be claimed when the platform writes it off which has yet to happen due to ongoing recoveries Not my experience.. admittedly with lendy, but with funding secure.. i contacted HMRC with regard to a loan which was 14 months unpaid... i was informed ( and i indeed enacted) that any loan i had that was passed 12 months unpaid, both capitol and interest could be declared a loss, and claimed as a loss against profits made elsewhere... BUT.. i was told that should any recovery be made after the date of declaring it as a loss, this would then need to be declared as a recovery, (additional income) and any tax due would have to be paid... a while later i did receive a proportion of the original loan back, which i declared on my next SA and paid the tax. My point being, it seems to be 12 months unpaid while in admin.. DOES qualify as a point where you can claim relief. That was my experience. I would advise anyone to contact HMRC by phone and have a chat with an adviser... it worked well for me.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,839
Likes: 11,068
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Post by ilmoro on Apr 6, 2023 21:00:50 GMT
Losses cannot be declared due to Lendy being in administration ... administration of the platform is not a qualifying criteria for relief. Losses can be claimed when the platform declares the loan as irrecoverable, which Lendy hasnt done. Alternatively lenders can self determine loans as eligible when the loan is in formal legal recovery ie administration, receivers, bankruptcy. Loans to Lendy (M1) do not qualify for loss relief against income, and loans that are in default, but not legal recovery, may also not qualify. The administrators have stated in their reports where loans wont have further recoveries which could be considered as qualifying them for relief under the first criteria, though there may be distributions of funds recovered but retained. Length of time in recovery is irrelevant. I suspect you have to declare loans in the year they become eligible ... you can carry losses forward if you have insufficient P2P income to offset in a year for up to 4 years but I doubt you can claim a loan in a different financial year to when it became eligible. eg for DFL017 it could be claimed in 2017-18 tax year when it entered legal recovery, or it could be claimed when the platform writes it off which has yet to happen due to ongoing recoveries Not my experience.. admittedly with lendy, but with funding secure.. i contacted HMRC with regard to a loan which was 14 months unpaid... i was informed ( and i indeed enacted) that any loan i had that was passed 12 months unpaid, both capitol and interest could be declared a loss, and claimed as a loss against profits made elsewhere... BUT.. i was told that should any recovery be made after the date of declaring it as a loss, this would then need to be declared as a recovery, (additional income) and any tax due would have to be paid... a while later i did receive a proportion of the original loan back, which i declared on my next SA and paid the tax. My point being, it seems to be 12 months unpaid while in admin.. DOES qualify as a point where you can claim relief. That was my experience. I would advise anyone to contact HMRC by phone and have a chat with an adviser... it worked well for me. Thats fair enough but its certainly not the position in the HMRC manuals or the law (Income Tax Act 2007, s412A onwards) so its slightly worrying if that what an advisor has said. There is a certain amount of discretion so if you have a good argument & can support it, like 12 months in default, HMRC are likely to accept it, but there isnt any hard timeframe. If a company takes out a loan, and appoints administrators the next day, the loan will be eligible then. However, it is definitely not the platform being in administration that is a valid criteria as they are not the borrower and you cant claim relief against interest only the principal. Not the first time Ive heard HMRC giving incorrect advice ... Gary Lineker, Jimmy Carr. Basically when it comes to tax its caveat emptor and what you can get away with it seems. NB Unlike Lendy FS declared their loans as losses in line with HMRC criteria so it was more straightforward
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Post by martin44 on Apr 6, 2023 22:24:18 GMT
Not my experience.. admittedly with lendy, but with funding secure.. i contacted HMRC with regard to a loan which was 14 months unpaid... i was informed ( and i indeed enacted) that any loan i had that was passed 12 months unpaid, both capitol and interest could be declared a loss, and claimed as a loss against profits made elsewhere... BUT.. i was told that should any recovery be made after the date of declaring it as a loss, this would then need to be declared as a recovery, (additional income) and any tax due would have to be paid... a while later i did receive a proportion of the original loan back, which i declared on my next SA and paid the tax. My point being, it seems to be 12 months unpaid while in admin.. DOES qualify as a point where you can claim relief. That was my experience. I would advise anyone to contact HMRC by phone and have a chat with an adviser... it worked well for me. Thats fair enough but its certainly not the position in the HMRC manuals or the law (Income Tax Act 2007, s412A onwards) so its slightly worrying if that what an advisor has said. There is a certain amount of discretion so if you have a good argument & can support it, like 12 months in default, HMRC are likely to accept it, but there isnt any hard timeframe. If a company takes out a loan, and appoints administrators the next day, the loan will be eligible then. However, it is definitely not the platform being in administration that is a valid criteria as they are not the borrower and you cant claim relief against interest only the principal. Not the first time Ive heard HMRC giving incorrect advice ... Gary Lineker, Jimmy Carr. Basically when it comes to tax its caveat emptor and what you can get away with it seems. NB Unlike Lendy FS declared their loans as losses in line with HMRC criteria so it was more straightforward im not sure why you see this as worrying, you can declare a 12 month loss as a loss.. if you get a return later, you pay your tax on the return... seems pretty simple to me.. as has happened to me... sometimes people read more into the interpretation than is necessary ... as i said .. just ring HMRC.. its much easier to get an interpretation from an adviser and act on that... thats what they are there for.
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Post by bracknellboy on Apr 7, 2023 7:42:02 GMT
Not my experience.. admittedly with lendy, but with funding secure.. i contacted HMRC with regard to a loan which was 14 months unpaid... i was informed ( and i indeed enacted) that any loan i had that was passed 12 months unpaid, both capitol and interest could be declared a loss, and claimed as a loss against profits made elsewhere... BUT.. i was told that should any recovery be made after the date of declaring it as a loss, this would then need to be declared as a recovery, (additional income) and any tax due would have to be paid... a while later i did receive a proportion of the original loan back, which i declared on my next SA and paid the tax. My point being, it seems to be 12 months unpaid while in admin.. DOES qualify as a point where you can claim relief. That was my experience. I would advise anyone to contact HMRC by phone and have a chat with an adviser... it worked well for me. Thats fair enough but its certainly not the position in the HMRC manuals or the law (Income Tax Act 2007, s412A onwards) so its slightly worrying if that what an advisor has said. There is a certain amount of discretion so if you have a good argument & can support it, like 12 months in default, HMRC are likely to accept it, but there isnt any hard timeframe. If a company takes out a loan, and appoints administrators the next day, the loan will be eligible then. However, it is definitely not the platform being in administration that is a valid criteria as they are not the borrower and you cant claim relief against interest only the principal. Not the first time Ive heard HMRC giving incorrect advice ... Gary Lineker, Jimmy Carr. Basically when it comes to tax its caveat emptor and what you can get away with it seems. NB Unlike Lendy FS declared their loans as losses in line with HMRC criteria so it was more straightforward Agree that it is illogical to consider the PLATFORM going into administration as a triggering event. The 'broker' still exists and is still being run, JUST by an administrator. Just take the example of a loan that was being serviced by the client before administration.... What I'm particularly surprised about is the comment that both Capitol (sic - too much reading of Trump / Jan 6th stories perhaps) and unpaid interest can be claimed as relief. If we are talking lending in a personal capacity and hence income tax (rather than business lending about which I know insufficient), then surely this is incorrect ? And if it such has been 'enacted' then surely that is a problem ??
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Post by martin44 on Apr 10, 2023 18:06:44 GMT
Thats fair enough but its certainly not the position in the HMRC manuals or the law (Income Tax Act 2007, s412A onwards) so its slightly worrying if that what an advisor has said. There is a certain amount of discretion so if you have a good argument & can support it, like 12 months in default, HMRC are likely to accept it, but there isnt any hard timeframe. If a company takes out a loan, and appoints administrators the next day, the loan will be eligible then. However, it is definitely not the platform being in administration that is a valid criteria as they are not the borrower and you cant claim relief against interest only the principal. Not the first time Ive heard HMRC giving incorrect advice ... Gary Lineker, Jimmy Carr. Basically when it comes to tax its caveat emptor and what you can get away with it seems. NB Unlike Lendy FS declared their loans as losses in line with HMRC criteria so it was more straightforward Agree that it is illogical to consider the PLATFORM going into administration as a triggering event. The 'broker' still exists and is still being run, JUST by an administrator. Just take the example of a loan that was being serviced by the client before administration.... What I'm particularly surprised about is the comment that both Capitol (sic - too much reading of Trump / Jan 6th stories perhaps) and unpaid interest can be claimed as relief. If we are talking lending in a personal capacity and hence income tax (rather than business lending about which I know insufficient), then surely this is incorrect ? And if it such has been 'enacted' then surely that is a problem ?? Firstly, no it is not incorrect, at the time, i wrote into my SA , after advice from HMRC, "The total amount being claimed as a loss" i included the loan amount + the interest due AND SUPPLIED ADDITIONAL DOCUMENTION WITH MY SA, and the total loss was accepted without question, as i said earlier, i did then receive a proportion of this back and duly declared it and paid the tax. TBH i simply followed the telephone advice i was given, was it correct advice?, who knows...
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Post by bracknellboy on Apr 10, 2023 18:58:29 GMT
Agree that it is illogical to consider the PLATFORM going into administration as a triggering event. The 'broker' still exists and is still being run, JUST by an administrator. Just take the example of a loan that was being serviced by the client before administration.... What I'm particularly surprised about is the comment that both Capitol (sic - too much reading of Trump / Jan 6th stories perhaps) and unpaid interest can be claimed as relief. If we are talking lending in a personal capacity and hence income tax (rather than business lending about which I know insufficient), then surely this is incorrect ? And if it such has been 'enacted' then surely that is a problem ?? Firstly, no it is not incorrect, at the time, i wrote into my SA , after advice from HMRC, "The total amount being claimed as a loss" i included the loan amount + the interest due AND SUPPLIED ADDITIONAL DOCUMENTION WITH MY SA, and the total loss was accepted without question, as i said earlier, i did then receive a proportion of this back and duly declared it and paid the tax. TBH i simply followed the telephone advice i was given, was it correct advice?, who knows... HMRC guidance on peer to peer lending here: www.gov.uk/guidance/peer-to-peer-lendingwhich contains the statement: Further information can be found in HMRC’s guidance on Income Tax relief for irrecoverable loans. The original includes an embedded link to the 'final guidance'. For convenience, that link is here Section "SAIM 12110 Amount of peer to peer tax relief available" from that document.: ... If the right to recover the loan still rests with the original lender The amount of relief available is the amount originally lent, less any repayments of the principal of
the loan already received. If the right to recover the loan has been assigned The amount of relief available is the lower of 1) The amount paid for the right to receive the principal of the loan less subsequent repayments 2) The amount of the principal of the loan outstanding on assignment, less subsequent repaymentsSo the letter of the HMRC rules is clear and pretty irrefutable. You can claim for loss of principal. You cannot claim for loss of interest. The idea that you could - in a personal lending capacity - claim for 'loss of interest' also simply fails a basic sense check. Loss of interest is in effect a 'lost opportunity cost', not an actual loss. I can't think of any other aspect of personal taxation which allows for relief for 'lost opportunity cost' rather than actual loss. Further, even the most simple of 'though experiments' shows how anomalous and indeed silly it would be. Here's a scheme: I'm going to set up a P2p loan for £200k at an interest rate of 150%. After 18 months the borrower defaults on it. I can now claim relief of 250% of the original loan value. Or better still, the firm doesn't pay up but fails to enter administration, but I choose to declare the loan as irrecoverable at 36 months due to lack of payments. Oh look, I can now claim 400% of my original capital as loss relief against other loans. i.e. the relief available can grow if I leave it longer !! Wonderful.
It is a prime facia nonsensical position.
While I wait to be corrected based on evidence, I'd humbly suggest that if you have genuinely made tax returns based on using 'lost interest to contribute to tax returns, you have made false tax returns. I hope you recorded that conversation with HMRC.
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Post by martin44 on Apr 10, 2023 19:26:34 GMT
Firstly, no it is not incorrect, at the time, i wrote into my SA , after advice from HMRC, "The total amount being claimed as a loss" i included the loan amount + the interest due AND SUPPLIED ADDITIONAL DOCUMENTION WITH MY SA, and the total loss was accepted without question, as i said earlier, i did then receive a proportion of this back and duly declared it and paid the tax. TBH i simply followed the telephone advice i was given, was it correct advice?, who knows... HMRC guidance on peer to peer lending here: www.gov.uk/guidance/peer-to-peer-lendingwhich contains the statement: Further information can be found in HMRC’s guidance on Income Tax relief for irrecoverable loans. The original includes an embedded link to the 'final guidance'. For convenience, that link is here Section "SAIM 12110 Amount of peer to peer tax relief available" from that document.: ... If the right to recover the loan still rests with the original lender The amount of relief available is the amount originally lent, less any repayments of the principal of
the loan already received. If the right to recover the loan has been assigned The amount of relief available is the lower of 1) The amount paid for the right to receive the principal of the loan less subsequent repayments 2) The amount of the principal of the loan outstanding on assignment, less subsequent repaymentsSo the letter of the HMRC rules is clear and pretty irrefutable. You can claim for loss of principal. You cannot claim for loss of interest. The idea that you could - in a personal lending capacity - claim for 'loss of interest' also simply fails a basic sense check. Loss of interest is in effect a 'lost opportunity cost', not an actual loss. I can't think of any other aspect of personal taxation which allows for relief for 'lost opportunity cost' rather than actual loss. Further, even the most simple of 'though experiments' shows how anomalous and indeed silly it would be. Here's a scheme: I'm going to set up a P2p loan for £200k at an interest rate of 150%. After 18 months the borrower defaults on it. I can now claim relief of 250% of the original loan value. Or better still, the firm doesn't pay up but fails to enter administration, but I choose to declare the loan as irrecoverable at 36 months due to lack of payments. Oh look, I can now claim 400% of my original capital as loss relief against other loans. i.e. the relief available can grow if I leave it longer !! Wonderful.
It is a prime facia nonsensical position.
While I wait to be corrected based on evidence, I'd humbly suggest that if you have genuinely made tax returns based on using 'lost interest to contribute to tax returns, you have made false tax returns. I hope you recorded that conversation with HMRC. I certainly did, and they assured me that it was also recorded by them. i don't doubt any info you can produce, as i said, i followed advice from HMRC, produced the original loan amount, proof of interest earned and proof of over 12months in recovery, and all was/is ok. I'm certainly not going to spend hours of my time perusing non-sensical HMRC jargon when i can simply make a 5 min phone call to assess my position. And bearing in mind that the info put into my SA was based on advice directly from HMRC, i doubt i have made a false tax return, indeed i would have expected HMRC to have "been back" to me by now if my SA contained false info. "Dear sir, you may have made a mistake on your SA tax return for the year ending ****" ETC ETC. ..... which i have received on numerous occasions ... I have had many conversations with HMRC over the last 38 years, and no complaints. EDIT...bear in mind... if you take out a loan with a bank FOR 10000 over 12 months at an interest rate of 10% and you pay nil back... will the bank chase you for 10000? or 11000? maybe the interest is recoverable?. and spelling.
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toffeeboy
Member of DD Central
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Post by toffeeboy on Apr 11, 2023 10:45:32 GMT
HMRC guidance on peer to peer lending here: www.gov.uk/guidance/peer-to-peer-lendingwhich contains the statement: Further information can be found in HMRC’s guidance on Income Tax relief for irrecoverable loans. The original includes an embedded link to the 'final guidance'. For convenience, that link is here Section "SAIM 12110 Amount of peer to peer tax relief available" from that document.: ... If the right to recover the loan still rests with the original lender The amount of relief available is the amount originally lent, less any repayments of the principal of
the loan already received. If the right to recover the loan has been assigned The amount of relief available is the lower of 1) The amount paid for the right to receive the principal of the loan less subsequent repayments 2) The amount of the principal of the loan outstanding on assignment, less subsequent repaymentsSo the letter of the HMRC rules is clear and pretty irrefutable. You can claim for loss of principal. You cannot claim for loss of interest. The idea that you could - in a personal lending capacity - claim for 'loss of interest' also simply fails a basic sense check. Loss of interest is in effect a 'lost opportunity cost', not an actual loss. I can't think of any other aspect of personal taxation which allows for relief for 'lost opportunity cost' rather than actual loss. Further, even the most simple of 'though experiments' shows how anomalous and indeed silly it would be. Here's a scheme: I'm going to set up a P2p loan for £200k at an interest rate of 150%. After 18 months the borrower defaults on it. I can now claim relief of 250% of the original loan value. Or better still, the firm doesn't pay up but fails to enter administration, but I choose to declare the loan as irrecoverable at 36 months due to lack of payments. Oh look, I can now claim 400% of my original capital as loss relief against other loans. i.e. the relief available can grow if I leave it longer !! Wonderful.
It is a prime facia nonsensical position.
While I wait to be corrected based on evidence, I'd humbly suggest that if you have genuinely made tax returns based on using 'lost interest to contribute to tax returns, you have made false tax returns. I hope you recorded that conversation with HMRC. I certainly did, and they assured me that it was also recorded by them. i don't doubt any info you can produce, as i said, i followed advice from HMRC, produced the original loan amount, proof of interest earned and proof of over 12months in recovery, and all was/is ok. I'm certainly not going to spend hours of my time perusing non-sensical HMRC jargon when i can simply make a 5 min phone call to assess my position. And bearing in mind that the info put into my SA was based on advice directly from HMRC, i doubt i have made a false tax return, indeed i would have expected HMRC to have "been back" to me by now if my SA contained false info. "Dear sir, you may have made a mistake on your SA tax return for the year ending ****" ETC ETC. ..... which i have received on numerous occasions ... I have had many conversations with HMRC over the last 38 years, and no complaints. EDIT...bear in mind... if you take out a loan with a bank FOR 10000 over 12 months at an interest rate of 10% and you pay nil back... will the bank chase you for 10000? or 11000? maybe the interest is recoverable?. and spelling. As you are claiming the interest as part of the loss then I am assuming that you had already paid tax on the interest when it was earned even though it wasn't paid as then I can understand why it would be allowable as a loss otherwise you are claiming something as a loss that you never paid tax on in the first place.. I am not sure what you edit example has to do with any of this. As a polite suggestion I would caveat your posts if you are going to mention things like this as it could be taken that you are offering advice (incorrect advice in my view) that others may use
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Greenwood2
Member of DD Central
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Post by Greenwood2 on Apr 11, 2023 12:37:26 GMT
It's hard enough earn enough true P2P interest to offset against capital losses let alone trying to offset lost interest. But the guidance is clear that only lost P2P capital can be offset against interest earned (only) from P2P investments, and only capital that would have generated taxable interest, ie, not P2P ISAs. A relatively small number of tax returns are fully manually checked by HMRC so it's quite possible to get things wrong and for it not to be picked up, if they do eventually investigate I believe they can go back seven? years, so keep your records.
Don't know about P2P losses and capital gains/losses, some people seem to claim this way, but I've never had gains to offset against anyway.
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Post by martin44 on Apr 13, 2023 20:57:28 GMT
I certainly did, and they assured me that it was also recorded by them. i don't doubt any info you can produce, as i said, i followed advice from HMRC, produced the original loan amount, proof of interest earned and proof of over 12months in recovery, and all was/is ok. I'm certainly not going to spend hours of my time perusing non-sensical HMRC jargon when i can simply make a 5 min phone call to assess my position. And bearing in mind that the info put into my SA was based on advice directly from HMRC, i doubt i have made a false tax return, indeed i would have expected HMRC to have "been back" to me by now if my SA contained false info. "Dear sir, you may have made a mistake on your SA tax return for the year ending ****" ETC ETC. ..... which i have received on numerous occasions ... I have had many conversations with HMRC over the last 38 years, and no complaints. EDIT...bear in mind... if you take out a loan with a bank FOR 10000 over 12 months at an interest rate of 10% and you pay nil back... will the bank chase you for 10000? or 11000? maybe the interest is recoverable?. and spelling. As you are claiming the interest as part of the loss then I am assuming that you had already paid tax on the interest when it was earned even though it wasn't paid as then I can understand why it would be allowable as a loss otherwise you are claiming something as a loss that you never paid tax on in the first place.. I am not sure what you edit example has to do with any of this. As a polite suggestion I would caveat your posts if you are going to mention things like this as it could be taken that you are offering advice (incorrect advice in my view) that others may use im not going to go on explaining.. its all above.
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