pikestaff
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Post by pikestaff on Sept 19, 2016 10:09:07 GMT
The Finance Bill received Royal Assent on 15 September. The provisions on income tax loss relief are unchanged.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Apr 27, 2018 6:59:33 GMT
If I submit my SA in June (as I usually do) including a claim for a default, and then some time before the end of the tax year the platform pays out a full or partial recovery, do I need to submit a revised SA or can I just include the amount as income in this year when I do my return next year?
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bigfoot12
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Post by bigfoot12 on Apr 27, 2018 7:33:54 GMT
If I submit my SA in June (as I usually do) including a claim for a default, and then some time before the end of the tax year the platform pays out a full or partial recovery, do I need to submit a revised SA or can I just include the amount as income in this year when I do my return next year? When you submit in June 2018 is that for personal tax year April 2017-April 2018? Or are you a company with a different tax year? If it is the former you would surely know if a payment was made before the end of the tax year wouldn't you?
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jan 23, 2020 9:15:31 GMT
Offset UK P2P Capital Losses against Australian P2P Income? Hopefully here is the right place to ask this. Given the Reciprocal/Double Taxation Agreement between the UK and Australia, I imagine it is perfectly acceptable to offset UK P2P Capital Losses against Australian P2P Income? Having left doing my Return until the last minute as usual I doubt if I ask HMRC (assuming I can even get through) that I will be able to get an answer before this tax year end. Thoughts, Oh Learned Ones out there? Oz is a stonking place for P2P btw, puts the UK in a shameful place. In advance, I thank you.
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Post by propman on Jan 23, 2020 10:40:55 GMT
Offset UK P2P Capital Losses against Australian P2P Income? Hopefully here is the right place to ask this. Given the Reciprocal/Double Taxation Agreement between the UK and Australia, I imagine it is perfectly acceptable to offset UK P2P Capital Losses against Australian P2P Income? Having left doing my Return until the last minute as usual I doubt if I ask HMRC (assuming I can even get through) that I will be able to get an answer before this tax year end. Thoughts, Oh Learned Ones out there? Oz is a stonking place for P2P btw, puts the UK in a shameful place. In advance, I thank you. THis will depend upon Australian tax rules. The double tax treaty does not go as far as allowing this. However if you are Australian tax resident in the period you incurred the UK losses, then this may have been prima facie taxable in Australia (ie despite any UK tax treaty relief that might have been available if you had made a loss) and so create australian tax losses that can be offset against Australian gains.
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nick
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Post by nick on Feb 9, 2021 12:27:05 GMT
Offset UK P2P Capital Losses against Australian P2P Income? Hopefully here is the right place to ask this. Given the Reciprocal/Double Taxation Agreement between the UK and Australia, I imagine it is perfectly acceptable to offset UK P2P Capital Losses against Australian P2P Income? Having left doing my Return until the last minute as usual I doubt if I ask HMRC (assuming I can even get through) that I will be able to get an answer before this tax year end. Thoughts, Oh Learned Ones out there? Oz is a stonking place for P2P btw, puts the UK in a shameful place. In advance, I thank you. The answer is no . One of the requirements of p2p loss relief is that the relevant loan must have been made through an operator (ie platform) that either has permission under Part 4A of the FSMA 2000 to operate an electronic system in relation to the lending of money, or has been granted equivalent permission under the law of a territory outside the UK that is within the EEA. The Australian/UK Double Taxation Convention (DTC) has no effect on this requirement. The DTC will allow you claim deduction your UK income tax liability any Australian income/withholding taxes suffered on your Australian P2P interest up to the amount chargeable in the UK (I'm assuming you are a UK resident).
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kielbasa
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Post by kielbasa on Jan 17, 2023 9:03:54 GMT
For individual tax payers, is there scope to treat losses on defaulted loans as capital losses rather than a loss to be set against other P2P income?
My losses far exceed other P2P income and I will never have enough P2P income to "cover" the losses.
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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 Jan 17, 2023 12:37:53 GMT
For individual tax payers, is there scope to treat losses on defaulted loans as capital losses rather than a loss to be set against other P2P income? My losses far exceed other P2P income and I will never have enough P2P income to "cover" the losses. Yes If loans dont qualify for income tax relief or there is insufficient income relief to offset all losses then CG relief may be available subject to the usual rules for CG relief qualification www.gov.uk/hmrc-internal-manuals/savings-and-investment-manual/saim12210
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kielbasa
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Post by kielbasa on Jan 23, 2023 15:15:31 GMT
Thanks, ilmoro.
If recoveries later take place on loans where capital losses have been claimed, is the recovery treated as a capital gain or income?
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nick
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Post by nick on Jan 23, 2023 21:26:50 GMT
Thanks, ilmoro. If recoveries later take place on loans where capital losses have been claimed, is the recovery treated as a capital gain or income? If you have claimed loss relief against P2P income, then any subsequent recoveries are reported as P2P income and taxed as such.
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pikestaff
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Post by pikestaff on Jan 24, 2023 8:35:33 GMT
Thanks, ilmoro. If recoveries later take place on loans where capital losses have been claimed, is the recovery treated as a capital gain or income? One of the conditions for claiming a loan loss as capital (as opposed to against income) is that the loan has become irrecoverable (there is no "treated as" relaxation). So no claim should be made until either the loan has been written off or there is other conclusive evidence (such as a statement from a liquidator) that there will be no further recovery. It follows that the situation you describe should only rarely arise. If it does, the recovery will be treated as a capital gain. Be aware that, unless you bought the loan second-hand, loss relief will only be available on "loans to traders", as defined in the legislation. The borrower must (if the loan was made before 24/1/2019) be UK resident, and the money lent must have been "used by the borrower wholly for the purposes of a trade carried on by him, not being a trade which consists of or includes the lending of money". See also HMRC guidance in HS296 and (for more detail) the HMRC manual.
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Greenwood2
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Post by Greenwood2 on Jan 24, 2023 10:31:27 GMT
If you've claimed against income: www.gov.uk/guidance/peer-to-peer-lending#claiming-tax-relief-on-unpaid-loansClaiming tax relief on unpaid loansIf a peer to peer loan isn’t repaid the lender can set the loss they suffer on the loan against the interest they receive on other peer to peer loans before the income is taxed. Tax relief is available to peer to peer lenders who: are liable to UK Income Tax on their peer to peer income make loans through peer to peer lending platforms that are authorised by the FCA are the legal lender at the time when its agreed that the loan has gone bad When relief can be obtained Tax relief applies when there is no reasonable prospect of the peer to peer loan being repaid, it doesn’t apply to late payment. The amount of relief available is the peer to peer loan still outstanding from the borrower, less repayments already received. Relief for bad debts on peer to peer loans can only be set against interest that the lender receives on other peer to peer loans, it cannot be used against any other form of income. If a debt is recovered after relief is given
If a lender has received relief for a bad debt on a peer to peer loan that is repaid at a later date (for example if the borrower manages to pay late, or if there is recovery of assets), the amount is treated as new peer to peer income of the lender.
When the relief will apply Peer to peer lenders who suffer bad debts on peer to peer loans from 6 April 2015 will be able to claim relief in their tax returns.
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keitha
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2024, hopefully the year I get out of P2P
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Post by keitha on Feb 2, 2023 15:36:01 GMT
how does Lendy fit ?
I understand that they weren't FCA authorised but claimed to be.
Actually that make recoveries at the moment costly 18 months ago 1% was a good return so interest on 50,000 plus £400 from p2p fitted in the allowance now with interest rates much higher the same amount is well over and p2p recoveries will be taxed, and looking at my FC recoveries my recoveries for this year look like being at least twice my loses
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nick
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Post by nick on Feb 2, 2023 16:42:00 GMT
how does Lendy fit ? I understand that they weren't FCA authorised but claimed to be. Actually that make recoveries at the moment costly 18 months ago 1% was a good return so interest on 50,000 plus £400 from p2p fitted in the allowance now with interest rates much higher the same amount is well over and p2p recoveries will be taxed, and looking at my FC recoveries my recoveries for this year look like being at least twice my loses Lendy was authorised under FCA for "Operating an electronic system in relation to lending" so P2P loss relief is available on irrecoverable loans: register.fca.org.uk/s/firm?id=001b000003LH3vsAAD . Collateral is the only platform that I'm aware of that claimed to be authorised for P2P activities, but weren't. Maybe you are confusing Lendy with Collateral? Unfortunately, Lendy never formally opine on the irrecoverability of loans on their platform. However, you can manually review commentary on each loan you hold and to the extent that the borrower is in administration, receivership or other insolvency process, the loan can be deemed as irrecoverable for the purposes of loss relief and the loss claimed against p2p income. Edit: you need to be careful that you claim the relief in the correct tax year, ie according to the date the loan is deemed irrecoverable (the date the borrower entered into a insolvency/administration/receivership etc). Tax relief can only used in the same tax year and carried forward for a maximum of 4 years.
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keitha
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2024, hopefully the year I get out of P2P
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Post by keitha on Feb 2, 2023 16:47:29 GMT
yes I think I am confusing the 2
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