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Post by p2psws on Jan 7, 2023 8:02:42 GMT
Hi,
Given the recent diabolical returns of DFL005, when is it sensible to start declaring capital losses to offset against future capital gains. (not that Im expecting to earn above the CG threshold at any point in my life!)
Are people waiting until its all done-and-dusted and the Admins finished? Or are people declaring capital losses now? The same applied to FS and Col losses, or perhaps those are different cases.
Thanks
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quidco
Member of DD Central
Posts: 295 
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Post by quidco on Jan 7, 2023 9:33:03 GMT
Hi, Given the recent diabolical returns of DFL005, when is it sensible to start declaring capital losses to offset against future capital gains. (not that Im expecting to earn above the CG threshold at any point in my life!) Are people waiting until its all done-and-dusted and the Admins finished? Or are people declaring capital losses now? The same applied to FS and Col losses, or perhaps those are different cases. Thanks I think the Lendy platform might generate this figure in the tax statement (My Account/Tax Statement) as there is a Capital Shortfall field, whether they will use this properly who knows and of course if you want to declare a capital loss in one year on a tax return and by some miracle the money subsequently appears I believe you can enter it as a capital gain.
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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: 11,330
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Post by ilmoro on Jan 7, 2023 13:27:26 GMT
Hi, Given the recent diabolical returns of DFL005, when is it sensible to start declaring capital losses to offset against future capital gains. (not that Im expecting to earn above the CG threshold at any point in my life!) Are people waiting until its all done-and-dusted and the Admins finished? Or are people declaring capital losses now? The same applied to FS and Col losses, or perhaps those are different cases. Thanks Very much up to individual circumstances as everyone is going to have different income from P2P to offset. (P2P loss relief is against P2P income, CG only comes in if there is no other way to claim losses) As far as Lendy goes losses on some loans have been claimable for years ... from the point the loan enters formal recovery. For loans where there is no formal recovery then have to wait for the platform to declare them as irrecoverable which the admins have effectively started to do. However, until the proceeds of each loan recovery are fully allocated there are likely to be further recoveries which will count as income. DFL005 is a case in point as there should be further funds to distribute under the 65% rule from a successful PI claim. The full picture will not be available until the administration/liquidation is complete and final distributions made to creditors (if any) FS losses have always been declared in the tax statement so far more straightforward to claim, Collateral losses are not claimable as they were not P2P loans, so they will have to be used against CGT. (Much more of a grey area)
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