Gee, I'd love to be taxed on ASSUMED interest, rather than .

wiseclerk
Editor of P2P-Banking.com

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Gee, I'd love to be taxed on ASSUMED interest, rather than . Sept 24, 2015 14:50:51 GMT

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Post by wiseclerk on Sept 24, 2015 14:50:51 GMT

Gee, I'd love to be taxed on ASSUMED interest, rather than actual interest!

Today I learned that DUTCH residents investing in p2plending are taxed based on an assumed 4% interest earned on capital
www.p2p-banking.com/countries/netherlands-crowdfunding-dutch-investors-where-to-go/
So the tax authorities do not bother if investors actually earned 8%, for tax calculation the basis is just 4%.

This is very peculiar and very different from taxation methods compared to the UK, US, Germany, Austria, you name it.

And the first time that the thought of living in the NL actually seems to have some attraction to me :-)

Any other odditidy out there in the countries you all live in?

Last Edit: Sept 24, 2015 14:52:01 GMT by wiseclerk

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james

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Gee, I'd love to be taxed on ASSUMED interest, rather than . Sept 24, 2015 20:29:35 GMT

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Post by james on Sept 24, 2015 20:29:35 GMT

Secondary market sales are a potential benefit under the UK system. Capital gains tax applies, not income tax, and there's an £11,100 a year tax free allowance. But a report has to be made with a tax return if the total value of sales is four times that or higher, even if no tax is due.

I would also like 4%. Much lower than my real interest rate.

Deleted

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Gee, I'd love to be taxed on ASSUMED interest, rather than . Sept 29, 2015 8:24:54 GMT

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Post by Deleted on Sept 29, 2015 8:24:54 GMT

james Could you please elaborate about capital gains tax on SM? Or at least point some links to it? This is the first year I'm using P2P and will need to file tax returns or let taxman know about my earnings from P2P.

james

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Gee, I'd love to be taxed on ASSUMED interest, rather than . Sept 29, 2015 13:46:11 GMT

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Post by james on Sept 29, 2015 13:46:11 GMT

Please see the Funding Circle guide. Whether a particular platrform's loans are potentialy subject to capital gains tax depends on how the loans are regarded by HMRC. That's something you should ask each platform you use about. They should have an opinion about whether their loans are or aren't subject to it.

One easy case is loans from consumers to consumers with direct P2P contracts between borrower and lender, as done at Zopa. Those clearly are not subject to CGT. This is moot for a seller there anyway because there's no opportunity to set the selling price to a premium or discount. That price adjustment happens and is done by Zopa themselves in the background so a buyer can get a capital gain but that wouldn't matter because of the nature of the loans there.