Post by qwakuk on Jan 29, 2021 15:11:54 GMT
www.lendingworks.co.uk/help-centre/tax#section-3
Their opinion re interest
How do ‘Shield contribution adjustments’ affect my tax returns?
Shield contribution adjustments may be applied to your repayments to divert additional funds to the Shield if loan losses on an annual cohort are higher than expected. These adjustments should be treated as “irrecoverable loans” for tax purposes and may therefore be offset against other P2P income. Shield contribution adjustments will be clearly identified on your monthly and annual Lending Works statements.
Note: This treatment is not relevant for loans held within an ISA where income is not subject to UK income tax.
The tax treatment depends on your individual circumstances and may be subject to change in future. If you have any questions on tax you should seek advice from an independent financial or tax advisor, or from HMRC, whose details are set out on their website at hmrc.gov.uk.
Their opinion re interest
How do ‘Shield contribution adjustments’ affect my tax returns?
Shield contribution adjustments may be applied to your repayments to divert additional funds to the Shield if loan losses on an annual cohort are higher than expected. These adjustments should be treated as “irrecoverable loans” for tax purposes and may therefore be offset against other P2P income. Shield contribution adjustments will be clearly identified on your monthly and annual Lending Works statements.
Note: This treatment is not relevant for loans held within an ISA where income is not subject to UK income tax.
The tax treatment depends on your individual circumstances and may be subject to change in future. If you have any questions on tax you should seek advice from an independent financial or tax advisor, or from HMRC, whose details are set out on their website at hmrc.gov.uk.