archie
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Post by archie on Apr 24, 2017 9:55:30 GMT
For investment based ISAs you cannot offset any losses, something to consider.  |
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stub8535
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Post by stub8535 on Apr 24, 2017 11:15:30 GMT
Also for consideration should be whether your ifisa is flexible or not. The FS one is not.
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stub8535
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Post by stub8535 on Apr 24, 2017 11:17:55 GMT
For investment based ISAs you cannot offset any losses, something to consider. Great warning to the unaware archie given the alarmung levels and growth in defaults and the age of bad debts.
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09dolphin
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Post by 09dolphin on Apr 24, 2017 11:27:28 GMT
As there are no charges in the FS IFISA this is a really efficient way to maximise savings, especially if you pay marginal rates of tax. Even loans that are late repaying (provided they do repay) allow you to plan your exposure to tax more efficiently. Yes if there is a default you lose interest and possibly some capital but if you were going to buy into a loan you have nothing to lose (unless you want to consider another P2P lenders IFISA). I suppose it depends on if you are a non tax payer or if there is another IFISA where you're returns are greater.
I have advised a family member to start an IFISA with FS.
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r1200gs
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Post by r1200gs on Apr 24, 2017 11:44:49 GMT
As there are no charges in the FS IFISA this is a really efficient way to maximise savings, especially if you pay marginal rates of tax. Even loans that are late repaying (provided they do repay) allow you to plan your exposure to tax more efficiently. Yes if there is a default you lose interest and possibly some capital but if you were going to buy into a loan you have nothing to lose (unless you want to consider another P2P lenders IFISA). I suppose it depends on if you are a non tax payer or if there is another IFISA where you're returns are greater.
I have advised a family member to start an IFISA with FS. It's FS where I'm looking at getting some bad loans though, which was what Archie was warning about. I have a £1000 in Whitehaven where a borrower seems to have been given half a million quid to clear a hole in the wall. Then the wind turbine as well. :-(
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stub8535
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Post by stub8535 on Apr 24, 2017 12:00:56 GMT
Or you could avoid defaults by churning and accepting a lower interest yield. Assumes selling at discounts before cutoff.
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stub8535
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Post by stub8535 on Apr 24, 2017 12:04:31 GMT
Easily done when platforms dd and data for lender dd are insufficient.
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09dolphin
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Post by 09dolphin on Apr 24, 2017 14:14:21 GMT
Tend not invest after 1st tranche has been fully subscribed (I have done if the LTV is under 50% on property). No longer pledge money for any loan above 65% LTV as it's too risky for me. Never lend in 2nd loans. Don't renew loan unless LTV is less than 60%. With jewellery etc I go with my guts as FS can and do sell the items if the loan isn't repaid pretty much on time. To date never lost a penny in interest and always recouped my capital when there are goods to sell. I never invest in boats as I know nothing about them. I'm only interested in putting money in the IFISA if the above are fulfilled at 5% less, ie if the 1st loan is for 6o% or less of LTV. Frankly I'm not bothered that much about the interest rate as long as it's 10% or more as almost all loans that fulfil this criteria don't default.
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stevio
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Post by stevio on Apr 26, 2017 9:48:47 GMT
I would prefer not to have funds sitting idle
To try to combat this, I was wondering if there was a limit to the number of ISA transfers you can make from previous years allowances, say from a cash ISA to a IFISA?
My theory being to transfer funds as and when they were needed
Obviously I would try not to abuse the system to cause excessive admin for a platform, but would say once a month transfers be allowable?
I realize that some IFISA's are not flexible and plan for this
Thanks!
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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 Apr 26, 2017 10:05:24 GMT
I would prefer not to have funds sitting idle To try to combat this, I was wondering if there was a limit to the number of ISA transfers you can make from previous years allowances, say from a cash ISA to a IFISA? My theory being to transfer funds as and when they were needed Obviously I would try not to abuse the system to cause excessive admin for a platform, but would say once a month transfers be allowable? I realize that some IFISA's are not flexible and plan for this Thanks! Not aware of any specific limit but would depend on the providers own rules so you would need to ask FS direct. Bear in mid that it would take up to 15 days each time.
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dzo
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Post by dzo on Apr 26, 2017 20:11:48 GMT
I would prefer not to have funds sitting idle To try to combat this, I was wondering if there was a limit to the number of ISA transfers you can make from previous years allowances, say from a cash ISA to a IFISA? My theory being to transfer funds as and when they were needed Obviously I would try not to abuse the system to cause excessive admin for a platform, but would say once a month transfers be allowable? I realize that some IFISA's are not flexible and plan for this Thanks! This is why flexibility is a much bigger benefit than most people seem to realise. Imagine if you'd transferred a lot of money into a hypothetical Money Thing ISA earlier this year. It would have been sitting idle for months.
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Liz
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Post by Liz on Apr 26, 2017 20:36:52 GMT
From FS website
": If you buy and then resell the same loan part on the secondary market you may be considered by HMRC to be a trader and be potentially liable for capital gains tax. The current capital gains annual exempt allowance for an individual is £11,100. Further information is available here."
ISTM, I'm no expert and not giving advice, that trader is buying and selling the same loan part on the SM. So worst case scenario is that CGT is liable and you are unlikely to be liable with a £11,100 limit, unless you have already used your allowance. Regarding ISA's I would be wary of selling any part that was purchased on the SM, I definitely won't risk selling a loan part in my ISA unless it was purchased on the PM and I probably won't be selling many loan parts just to be safe, if any.
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oldgrumpy
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Post by oldgrumpy on Apr 26, 2017 21:21:46 GMT
fundingsecure If I sell a £25 loan part from within my IFISA after four months, and the proceeds are £26, does that £26 go back into my IFISA account, or is it put in my main account?
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Liz
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Post by Liz on Apr 26, 2017 21:44:47 GMT
fundingsecure If I sell a £25 loan part from within my IFISA after four months, and the proceeds are £26, does that £26 go back into my IFISA account, or is it put in my main account? The two are separate, so it would stay in the ISA A/C. Be careful you sound like a trader 
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oldgrumpy
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Post by oldgrumpy on Apr 26, 2017 21:52:32 GMT
Liz Yes, that's what I thought. Your words "...definitely won't risk selling a loan part in my ISA unless it was purchased on the PM..." made me think though. I'm not a "trader" , but I certainly want to be able to sell occasional loan parts before the last thirty days if I discover certain unwanted news during the loan term. This will happen more often if I have risked investing in a "renewal". edit ... and now I've read your whole post properly; I think we are on the same banana. Getting late. PINT PLEASE!  
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