tomtom
Member of DD Central
Posts: 262 
Likes: 39
|
Post by tomtom on Feb 16, 2016 16:34:37 GMT
I assume that other P2P site will also be looking into opening an ISA account and the question will then be which site will you choose, this is going to require much more thought as you will be only allowed 1 ISA account and doubt members will be thinking about the questions they have to consider. At first I thought that from a purly financial point of view the board which you are most invested in should be a front runner but then I started thinking if this would be the most sensibly one. Assuming that you are using different leanding sites for different lending policies it now seems to me that on basis that you would/could be allowed to ofset any losses it would be make more sense to have your most agresive lending scheme in your isa where your lending is at higher lending rates and therefore larger returns but possible chance of more failues combined with potential losses off set against returns.
Interested in reading what other members are thinking about where to invest their ISA cash.
|
|
|
|
Post by brianac on Feb 16, 2016 16:58:00 GMT
I assume that other P2P site will also be looking into opening an ISA account and the question will then be which site will you choose, this is going to require much more thought as you will be only allowed 1 ISA account and doubt members will be thinking about the questions they have to consider. At first I thought that from a purly financial point of view the board which you are most invested in should be a front runner but then I started thinking if this would be the most sensibly one. Assuming that you are using different leanding sites for different lending policies it now seems to me that on basis that you would/could be allowed to ofset any losses it would be make more sense to have your most agresive lending scheme in your isa where your lending is at higher lending rates and therefore larger returns but possible chance of more failues combined with potential losses off set against returns. Interested in reading what other members are thinking about where to invest their ISA cash. Surely you are allowed lots of ISA accounts, but you're only allowed to open one per year, or are HMRC specifically not allowing transfers in?
|
|
investibod
Member of DD Central
Posts: 288
Likes: 152
|
Post by investibod on Feb 16, 2016 17:57:57 GMT
Surely you are allowed lots of ISA accounts, but you're only allowed to open one per year, or are HMRC specifically not allowing transfers in? Unless I am mistaken, you can open as many ISA accounts as you wish. The important thing is that you are only allowed to contribute new money to 1 ISA per financial year (of a particular ISA type).
|
|
tomtom
Member of DD Central
Posts: 262
Likes: 39
|
Post by tomtom on Feb 16, 2016 18:34:58 GMT
Surely you are allowed lots of ISA accounts, but you're only allowed to open one per year, or are HMRC specifically not allowing transfers in? Unless I am mistaken, you can open as many ISA accounts as you wish. The important thing is that you are only allowed to contribute new money to 1 ISA per financial year (of a particular ISA type). True so how are you going to decide which P2P site you open your ISA for the coming year starting 5th. April?
|
|
|
|
Post by brianac on Feb 16, 2016 18:54:40 GMT
Unless I am mistaken, you can open as many ISA accounts as you wish. The important thing is that you are only allowed to contribute new money to 1 ISA per financial year (of a particular ISA type). True so how are you going to decide which P2P site you open your ISA for the coming year starting 5th. April? That's what I'm trying to decide. FC are out, too much hard work for the return (And I don't trust autobid) Plan is hopefully to have 2 - 1 transferred in. All sugestions listened to.
|
|
|
|
Post by bracknellboy on Feb 16, 2016 19:37:42 GMT
My initial reaction is the one - if any - that manages to offer a genuine B&B facility is likely going to catch my attention. Failing that the one where I have my highest gross rate, on the basis/assumption that capital losses on p2p can be offset against income.
Its hard work building up a loan book on the likes of TC and AC MLIA and I do not fancy having to liquidate and re-buy, esp. as I'm sure it would be nigh on impossible to rebuild the same book. Also where platforms have selling fees, if B&B is not going to be possible, a waiver of selling fees on sales equivalent to the amount you have deposited in a platform's ISA would also make a difference.
|
|
kermie
Member of DD Central
Posts: 691
Likes: 462
|
Post by kermie on Feb 16, 2016 20:16:16 GMT
My initial reaction is the one - if any - that manages to offer a genuine B&B facility is likely going to catch my attention. Failing that the one where I have my highest gross rate, on the basis/assumption that capital losses on p2p can be offset against income. Its hard work building up a loan book on the likes of TC and AC MLIA and I do not fancy having to liquidate and re-buy, esp. as I'm sure it would be nigh on impossible to rebuild the same book. Also where platforms have selling fees, if B&B is not going to be possible, a waiver of selling fees on sales equivalent to the amount you have deposited in a platform's ISA would also make a difference. Agree with most of that. Would add a couple of things: i) I raised the question previously on this forum about whether or not IFISA P2P losses could be offset against income. FWIR the response was not positive. Of course we keep on hearing that HMRC has yet to spell out the details, so perhaps we'll just wait and see on that one. ii) The other thing I would give considerable weighting to is this: does the P2P platform "auction" loans off such that the lender rate is "bid down"? If so, I am not interested in general, but for ISA I will really not be interested since the additional volume of cash will surely chase rates even lower - and I don't want to be stuck with my ISA in a provider like that. Yes, I can transfer out (presumably), but that's hassle and I'd probably have to sell off my loans to do so, which means cash not earning its keep. IMO, the fixed-rate model has been adopted by Fried Chicken for that reason: it expects "stupid money" to arrive with ISAs and hence lenders will chase rates down to the point where everyone makes a loss....so they are trying to prevent that in advance of ISA money arriving. I'm glad AC saw this way ahead of the game and dropped auction-style loans very early on.
|
|
|
|
Post by Ton ⓉⓞⓃ on Feb 16, 2016 20:41:29 GMT
I keep thinking about (and talking about) Investup, I'm yet to sign up to them myself. My understanding of their offering is that you should be able to invest in several different platforms with one (or more) IFISA(s).
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Feb 16, 2016 20:46:37 GMT
My initial reaction is the one - if any - that manages to offer a genuine B&B facility is likely going to catch my attention. Failing that the one where I have my highest gross rate, on the basis/assumption that capital losses on p2p can be offset against income. i) I raised the question previously on this forum about whether or not IFISA P2P losses could be offset against income. FWIR the response was not positive. Of course we keep on hearing that HMRC has yet to spell out the details, so perhaps we'll just wait and see on that one. Yes, we will have to wait and see what the final rules are, but I'd be absolutely gobsmacked if losses generated inside an ISA were allowed to be used to offset income from outside an ISA that would otherwise be taxable. So unless lightning were to strike, I'd think that the best P&P holdings to have inside an IFISA would be those that generate the highest net return -- by which I mean profits after losses are subtracted. With P2P -- or any other investment, for that matter -- it's rather difficult to know in advance which one will produce the best return. Time to polish up our crystal balls?
|
|
|
|
Post by brianac on Feb 16, 2016 21:39:02 GMT
i) I raised the question previously on this forum about whether or not IFISA P2P losses could be offset against income. FWIR the response was not positive. Of course we keep on hearing that HMRC has yet to spell out the details, so perhaps we'll just wait and see on that one. Yes, we will have to wait and see what the final rules are, but I'd be absolutely gobsmacked if losses generated inside an ISA were allowed to be used to offset income from outside an ISA that would otherwise be taxable. So unless lightning were to strike, I'd think that the best P&P holdings to have inside an IFISA would be those that generate the highest net return -- by which I mean profits after losses are subtracted. With P2P -- or any other investment, for that matter -- it's rather difficult to know in advaI think I'm gonna stay clearnce which one will produce the best return. Time to polish up our crystal balls? I think I'm gonna try and avoid property as much as possible, particularly around London, trouble is, it seems hard to avoid in P2P.
|
|
|
|
Post by bracknellboy on Feb 16, 2016 22:05:08 GMT
My initial reaction is the one - if any - that manages to offer a genuine B&B facility is likely going to catch my attention. Failing that the one where I have my highest gross rate, on the basis/assumption that capital losses on p2p can be offset against income. Its hard work building up a loan book on the likes of TC and AC MLIA and I do not fancy having to liquidate and re-buy, esp. as I'm sure it would be nigh on impossible to rebuild the same book. Also where platforms have selling fees, if B&B is not going to be possible, a waiver of selling fees on sales equivalent to the amount you have deposited in a platform's ISA would also make a difference. Agree with most of that. Would add a couple of things: i) I raised the question previously on this forum about whether or not IFISA P2P losses could be offset against income. FWIR the response was not positive. Of course we keep on hearing that HMRC has yet to spell out the details, so perhaps we'll just wait and see on that one. ii) The other thing I would give considerable weighting to is this: does the P2P platform "auction" loans off such that the lender rate is "bid down"? If so, I am not interested in general, but for ISA I will really not be interested since the additional volume of cash will surely chase rates even lower - and I don't want to be stuck with my ISA in a provider like that. Yes, I can transfer out (presumably), but that's hassle and I'd probably have to sell off my loans to do so, which means cash not earning its keep. IMO, the fixed-rate model has been adopted by Fried Chicken for that reason: it expects "stupid money" to arrive with ISAs and hence lenders will chase rates down to the point where everyone makes a loss....so they are trying to prevent that in advance of ISA money arriving. I'm glad AC saw this way ahead of the game and dropped auction-style loans very early on. I would not expect losses within any ISA to be able to be offset against gains anywhere - it would make as about as much sense as a chocolate tea pot.
|
|
kermie
Member of DD Central
Posts: 691
Likes: 462
|
Post by kermie on Feb 16, 2016 22:15:52 GMT
Did I misunderstand your statement, bracknellboy? i thought you were talking about within an ISA? "My initial reaction is the one - if any - that manages to offer a genuine B&B facility is likely going to catch my attention. Failing that the one where I have my highest gross rate, on the basis/assumption that capital losses on p2p can be offset against income."
Certainly it seems unlikely. Probably just wishful thinking on my part. |
|
|
|
Post by chris on Feb 16, 2016 22:25:02 GMT
Yes, we will have to wait and see what the final rules are, but I'd be absolutely gobsmacked if losses generated inside an ISA were allowed to be used to offset income from outside an ISA that would otherwise be taxable. So unless lightning were to strike, I'd think that the best P&P holdings to have inside an IFISA would be those that generate the highest net return -- by which I mean profits after losses are subtracted. With P2P -- or any other investment, for that matter -- it's rather difficult to know in advaI think I'm gonna stay clearnce which one will produce the best return. Time to polish up our crystal balls? I think I'm gonna try and avoid property as much as possible, particularly around London, trouble is, it seems hard to avoid in P2P. Whilst it's often used as the means of securing loans, although it's far from the only asset class taken as security by AC, a large proportion of our loans are not bridging or development loans. So whether or not one of those loans defaults is not linked to the property market even if in many cases the expected loss upon default is linked to the property market.
|
|
