starfished
Member of DD Central
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Post by starfished on Sept 18, 2020 7:18:37 GMT
Unfortunately I can't find the research but at the time the Government was looking to remove the fees advisors got from banks/insurance companies to make the market more transparent (i.e. so the customer paid). A counter argument for why the market had developed the way it had was put forward.
Research showed that people just don't value nor want to pay for financial/tax advice. Even those that had no bad past experience and unfamiliar with past mis-selling scandals, still put the hourly rate they were happy to pay their plumber significantly higher than what they would happily pay a financial/tax advisor. Don't get me wrong, plumbing is really important but I found that fascinating. You were talking about people who had substantial savings/assets. Perhaps it is the intangibility of advice...
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Greenwood2
Member of DD Central
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Post by Greenwood2 on Sept 18, 2020 9:24:34 GMT
Thanks I'm trying to understand "Loans that become irrecoverable on or after 6 April 2016 An irrecoverable loan that would have been eligible for capital gains relief as a capital loss under TCGA 1992 will no longer be eligible for that relief. This is because Section 2(3) of TCGA 1992 specifically gives priority to income tax reliefs. However, in a situation where a loan does not meet the conditions for Income tax relief for irrecoverable peer to peer loans then the lender may still be eligible for capital loss relief on the loss that they incur, if the capital loss relief conditions are met.This could also apply if the amount of Income tax relief for irrecoverable peer to peer loans available is limited to less than the full amount lost by the lender. In that case it is also possible that the lender may be eligible for capital loss relief on the remainder of the loss that they incur, if the capital loss relief conditions are met." Does it mean under certain condition it can be offset against capital gain or income tax? And so which ones? Because all the examples they gave on the next page are to offset against future p2p earning... which I know will never be high enough to recover the losses. Note 1: And btw, the loss are under personal account. So I can't use business. Its way simpler as business as loss can be treated as what it is and offset against profit... Note 2: no its not possible to sell. I would have been happy to sell many of my loan with significant loss instead of having them locked down for years... As I read it, if for some obscure, unknown reason your loans are not eligible for income tax relief for irrecoverable P2P loans (but you have made a loss). Under some unexplained conditions you might be able to offset something against taxable capital gains. I don't think I have any ineligible loans and I don't have any taxable capital gains to offset against anyway, even if I did fully understand it! I think you would need an expert for that, or ask HMRC. Edit: From the next paragraph, also losses exceeding the income tax relief might also be allowable against taxable capital gains. Interesting but still no use to me. Edit: As far as I understand it (which is not far!) the capital gains bit still seems to be all about loans that have been traded on an SM, but I could well be wrong.
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Post by paul123 on Sept 18, 2020 14:07:48 GMT
Thanks I'm trying to understand "Loans that become irrecoverable on or after 6 April 2016 An irrecoverable loan that would have been eligible for capital gains relief as a capital loss under TCGA 1992 will no longer be eligible for that relief. This is because Section 2(3) of TCGA 1992 specifically gives priority to income tax reliefs. However, in a situation where a loan does not meet the conditions for Income tax relief for irrecoverable peer to peer loans then the lender may still be eligible for capital loss relief on the loss that they incur, if the capital loss relief conditions are met. This could also apply if the amount of Income tax relief for irrecoverable peer to peer loans available is limited to less than the full amount lost by the lender. In that case it is also possible that the lender may be eligible for capital loss relief on the remainder of the loss that they incur, if the capital loss relief conditions are met." Does it mean under certain condition it can be offset against capital gain or income tax? And so which ones? Because all the examples they gave on the next page are to offset against future p2p earning... which I know will never be high enough to recover the losses. Note 1: And btw, the loss are under personal account. So I can't use business. Its way simpler as business as loss can be treated as what it is and offset against profit... Note 2: no its not possible to sell. I would have been happy to sell many of my loan with significant loss instead of having them locked down for years... Might be worth pointing out, while not wanting to open a can of worms, that Collateral was probably never a p2p lender...
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