stevio
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Post by stevio on May 28, 2016 8:54:12 GMT
It is perhaps worth pointing out that the advice from Ablrate's accountants was heavily caveated. I also raised a question about treating instant returns as a capital gain on the Ablrate board that no one was able to answer. The question is this: when instant returns are paid by Ablrate but the loan does not go ahead how can the instant returns be a deduction from the purchase price of a non-existent loan? And what were the loan disposal proceeds when the loan was never drawn down? As there treating them as a fee, would this be income then if loan doesn't go ahead or an non-taxable incentive to bid?
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james
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Post by james on May 28, 2016 10:19:21 GMT
I've updated the second post with a summary of the Ablrate situation now the advice from their accountant is available. Loans are securities fully subject to CGT and covered by the Accrued Interest Scheme so: 1. Secondary market profits and losses are subject to CGT. 2. Repayments by the borrower either in monthly payments or at the end can create a capital loss or gain. 3. Instant returns are a discount to the purchase price, not interest, include them in your CGT calculations. 4. Accrued interest is accountable to the seller at the time of sale and taxed as interest as usual. To the buyer the accrued interest which they pay should be deducted from the interest received from the borrower. This is quite different from how FS treat Accrued Interest and and Secondary Market premiums/discounts and Interest from the loan If you have details of what FS do I'll add them to the second post. Links are particularly welcome so I can point people to the source of the information. I'd also welcome details of any other platform not yet included in the list.
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stevio
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Post by stevio on May 28, 2016 13:29:56 GMT
This is quite different from how FS treat Accrued Interest and and Secondary Market premiums/discounts and Interest from the loan If you have details of what FS do I'll add them to the second post. Links are particularly welcome so I can point people to the source of the information. I'd also welcome details of any other platform not yet included in the list.
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james
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Post by james on Jul 18, 2016 15:33:03 GMT
I've added a summary of how FundingSecure appears to be describing their situation in their tax FAQ. There's also interesting discussion at SM and tax. |
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