kaya
Member of DD Central
Posts: 1,150 
Likes: 718
|
Post by kaya on Jan 2, 2016 15:24:20 GMT
I have had no problem with the Secondary Market on FS. It has worked well for me but I have only sought small premiums on sales and haven't attempted to buy anything yet. Maybe the reason that you have not had a problem yet is because you have not had to complete a tax return. When you do will you declare the interest you have earned on the loan sold? What about the premium? I don't know whether or not you should - that is the problem. There are different opinions voiced on this forum but that is all they are - just opinions. The SM could and should have been structured in a different way which would have avoided both the tax and premium problems. I like the fairy lights! How do you do that?
|
|
ablender
Member of DD Central
Posts: 2,204
Likes: 555
|
Post by ablender on Jan 2, 2016 16:29:25 GMT
Maybe the reason that you have not had a problem yet is because you have not had to complete a tax return. When you do will you declare the interest you have earned on the loan sold? What about the premium? I don't know whether or not you should - that is the problem. There are different opinions voiced on this forum but that is all they are - just opinions. The SM could and should have been structured in a different way which would have avoided both the tax and premium problems. I like the fairy lights! How do you do that? I vote for them to remain indefinitely.
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,045
Likes: 1,862
|
Post by littleoldlady on Jan 2, 2016 16:51:04 GMT
I like the fairy lights! How do you do that? Help yourself! Just right click on the pic.
|
|
pikestaff
Member of DD Central
Posts: 2,187
Likes: 1,546
|
Post by pikestaff on Jan 3, 2016 8:01:14 GMT
Having spent probably too much time on the HMRC website I'm content that I can distinguish the difference between a capital gain and an interest payment and the difference in their treatment.
Do you think the accrued but unpaid interest realized via SM sales needs to be declared as capital gains to HMRC? Note that everyone has an annual £11,100 CG allowance. Assuming that you are investing as an individual and not a company, then: If you are not a trader: - gains and losses on the sale of loan parts which you bought new are outside the scope of tax. This includes the accrued interest included in the selling price; - gains and losses on the sale of loan parts which you bought second-hand are taxable/deductible as capital gains/losses (and benefit from the CG allowance). This assumes that your second-hand loan parts are (in legal form) second-hand, which I believe to be the case on FS. If you are a trader, all gains and losses on the sale of loan parts are taxable/deductible as INCOME as trading profits/losses (and do not benefit from the CG allowance). See also my earlier post p2pindependentforum.com/post/82443/thread.
|
|
duck
Member of DD Central
Posts: 2,874
Likes: 6,926
|
Post by duck on Jan 3, 2016 8:36:44 GMT
Thanks for putting it much clearer than I have managed pikestaff |
|
ablender
Member of DD Central
Posts: 2,204
Likes: 555
|
Post by ablender on Jan 3, 2016 14:17:36 GMT
As a minimum we need FS to put all this in writing on their website for all FS lenders to see (not only those who frequent this forum). I have to say that it will still not make me happy and I would still consider the SM as not available to me. By available I understand something that I feel free to use, which is not the case.
|
|
|
|
Post by philip84 on Jan 4, 2016 2:17:19 GMT
Luckily, I have set my own rules on which risks I am willing to take and/ or not take on the FS SM, and I must say that the FS SM is very available to me. I'm not going into any further discussion on this topic though, as I must say that I am getting sick of this topic...
|
|
ablender
Member of DD Central
Posts: 2,204
Likes: 555
|
Post by ablender on Mar 13, 2016 22:47:47 GMT
Following discussions in other threads on different boards in this forum, it is clear that finally people are realising what this secondary market is really like. This is starting to have a negative reaction to the SM which might also leak to the PM. fundingsecure: time to rethink your SM. |
|
