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Post by tedbob on May 31, 2023 14:28:50 GMT
Now some of the loans are confirmed not to be recovered fully (or not at all), what's the impact on income tax?
Can I deduct my losses?
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p2pfan
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Post by p2pfan on May 31, 2023 21:53:26 GMT
I'm not a tax expert per se, but the basic logical answer is that, based on HMRC's guidelines, yes, you should be able to deduct your losses.
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ilmoro
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Post by ilmoro on May 31, 2023 22:19:33 GMT
Losses should already be included in your tax statement from the point the loans went into recovery as FS declared loans irrecoverable at that point.
Have you got any P2P income to deduct them from?
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Investboy
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Trying to recover from P2P revolution
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Post by Investboy on Jun 5, 2023 17:09:32 GMT
AFAIK you can only deduct your losses agains gains from P2P. If you have no gains frop P2P you can't deduct. Welcome to the club. I see my losses cristalizing from various platforms and can't do anything with them as I stopped playing P2P casino when my last plaform went into administration 
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rogerthat
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Post by rogerthat on Jun 6, 2023 11:47:35 GMT
AFAIK you can only deduct your losses agains gains from P2P. If you have no gains frop P2P you can't deduct. Welcome to the club. I see my losses cristalizing from various platforms and can't do anything with them as I stopped playing P2P casino when my last plaform went into administration "AFAIK you can only deduct your losses agains (sic ) gains from P2P. If you have no gains frop P2P you can't deduct." That is correct.
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ilmoro
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'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 Jun 6, 2023 12:52:41 GMT
AFAIK you can only deduct your losses agains gains from P2P. If you have no gains frop P2P you can't deduct. Welcome to the club. I see my losses cristalizing from various platforms and can't do anything with them as I stopped playing P2P casino when my last platform went into administration In the absence of any P2P income then it appears it may be possible to deduct from Capital gains. www.gov.uk/hmrc-internal-manuals/savings-and-investment-manual/saim12210
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j1
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Post by j1 on Jun 19, 2023 20:13:38 GMT
Offsetting capital gains would be very interesting. I'm not sure I follow the link above. Can someone please elaborate?
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Post by diamon89 on Jun 28, 2023 14:10:49 GMT
My understanding is that if you don't have any P2P income (or your P2P losses are greater than your P2P income) then you have suffered a capital loss which you can offset against other capital gains. And, as I understand it, if you have no capital gain in the relevant year you can roll over unused capital losses until you do have a capital gain.
So, l think the following works:
You invested £50k in FS
That £50k is deemed entirely irrecoverable, so you record a capital loss of £50k, and record this as a loss to carry forward on your tax return.
Some years later you make a £50k gain on the sale of a buy to let property (or whatever - some other investment). You can now use your capital loss to offset that gain.
(I am not an accountant, you should not rely on this.)
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rogerthat
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Post by rogerthat on Jun 30, 2023 13:26:00 GMT
My understanding is that if you don't have any P2P income (or your P2P losses are greater than your P2P income) then you have suffered a capital loss which you can offset against other capital gains. And, as I understand it, if you have no capital gain in the relevant year you can roll over unused capital losses until you do have a capital gain. So, l think the following works: You invested £50k in FS That £50k is deemed entirely irrecoverable, so you record a capital loss of £50k, and record this as a loss to carry forward on your tax return. Some years later you make a £50k gain on the sale of a buy to let property (or whatever - some other investment). You can now use your capital loss to offset that gain. (I am not an accountant, you should not rely on this.) Isn't there a limit on how many years you have the 'ability' to set this off against any capital gains liability ? www.gov.uk/capital-gains-tax/losses#:~:text=You%20do%20not%20have%20to,you%20disposed%20of%20the%20asset.
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