Post by p2pshark on May 6, 2017 19:47:06 GMT
Hi all,
I'm new to this forum so i would just like to first say how great it is to have an independent resource out there, fills an important demand.
My question is simple but i have not been able to find the answer yet. The short question is: what tax do you need to pay when you profit from reselling a loan on the secondary market?
Same question with background reasoning:
When you buy a loan on property moose, say £100 at 8% and the term is 12 months (there is one on the market right now). If you keep it until the end, you will have made £8 profit which you will pay tax on if you are above your interest allowance for the year (this is my case). On the other, and this is where it would be interesting for me, if I sell it back on the secondary market before the interest is paid for a profit, say £105 after 10 months, would this now be classified as capital gain of £5? This is assuming that interest is paid only at the end of the 12 months, which is not always the case...
Many thanks for your help!
I'm new to this forum so i would just like to first say how great it is to have an independent resource out there, fills an important demand.
My question is simple but i have not been able to find the answer yet. The short question is: what tax do you need to pay when you profit from reselling a loan on the secondary market?
Same question with background reasoning:
When you buy a loan on property moose, say £100 at 8% and the term is 12 months (there is one on the market right now). If you keep it until the end, you will have made £8 profit which you will pay tax on if you are above your interest allowance for the year (this is my case). On the other, and this is where it would be interesting for me, if I sell it back on the secondary market before the interest is paid for a profit, say £105 after 10 months, would this now be classified as capital gain of £5? This is assuming that interest is paid only at the end of the 12 months, which is not always the case...
Many thanks for your help!