mj87
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Post by mj87 on Jul 11, 2019 14:19:04 GMT
Hello,
Just wondering if everyone has declared the total holdings with collateral as a loss against their income. Therefore any money returned (if any) from collateral will equal new income?
Many thanks.
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withnell
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Post by withnell on Jul 11, 2019 14:26:16 GMT
You can only offset current year income from P2P investments against valid P2P contracts that are defaulted
As the current info we've received is that COL wasn't authorised, that means those loans wouldn't be eligible to use to offset
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duck
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Post by duck on Jul 11, 2019 14:56:28 GMT
Because Col had no permissions you cannot claim losses as things stand at present. I have taken this up with HMRC and 2 months later the 'policy specialist' is yet to get back to me.
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gc
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Post by gc on Jul 11, 2019 19:15:04 GMT
You can only offset current year income from P2P investments against valid P2P contracts that are defaulted As the current info we've received is that COL wasn't authorised, that means those loans wouldn't be eligible to use to offsetShould be able to claim it back from the FCA! ....... (may have overshot the bitterness a tad there!) ;-)
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Post by martin44 on Jul 11, 2019 20:21:38 GMT
Because Col had no permissions you cannot claim losses as things stand at present. I have taken this up with HMRC and 2 months later the 'policy specialist' is yet to get back to me. Good point.. not being in col for some time and being fortunate enough to suffer no losses, (but i did elsewhere) i would simply claim the losses on the tax return... and leave HMRC to decide there and then...my outcome was positive, but as a last resort.. they can only say no..
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duck
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Post by duck on Jul 12, 2019 3:11:09 GMT
Because Col had no permissions you cannot claim losses as things stand at present. I have taken this up with HMRC and 2 months later the 'policy specialist' is yet to get back to me. Good point.. not being in col for some time and being fortunate enough to suffer no losses, (but i did elsewhere) i would simply claim the losses on the tax return... and leave HMRC to decide there and then...my outcome was positive, but as a last resort.. they can only say no.. Sorry but I don't agree with you. By making a claim against Col on your Tax Return you are knowingly making a false return unless you make it very clear what you are doing. The FCA has categorically stated that Col had no permissions and the FOI's that I hold show that Cols application remained at 'case assessment stage ' until they called in the administrators. Whilst I agree that making a claim might force HMRC into making a decision you would have to include very clear notes to show that you have added Col to your 'losses' (normally aggregated on the return) to avoid any problems with HMRC. The other downside is that a rush decision could be made to disallow which would mean a long hard fight to get the decision reversed. With G'ment departments it is always harder for them to reverse a decision than to make the 'correct' decision in the first place. I spent 3 years and many letters getting a VAT rebate when the HMRC website (advice I had followed) was wrong (proved at a Tax tribunal) and I had overpaid. Even in very simple cases getting a 'sorry I was wrong' decision is painfully difficult. Like all things Col related nothing is coming easily / quickly but personally I am holding back from making Tax claims wrt Col until the situation with the FCA is finally sorted.
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mj87
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Post by mj87 on Jul 12, 2019 11:29:45 GMT
Hello,
Applying this above logic I guess the loss from Lendy will therefore be taxable on income?
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duck
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Post by duck on Jul 12, 2019 11:58:01 GMT
Hello, Applying this above logic I guess the loss from Lendy will therefore be taxable on income? did you mean 'offsettable' against income? If so yes but only when the losses are crystallised i.e. after administration/liquidation afaik.
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mj87
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Post by mj87 on Jul 12, 2019 12:03:21 GMT
Hello, Applying this above logic I guess the loss from Lendy will therefore be taxable on income? did you mean 'offsettable' against income? If so yes but only when the losses are crystallised i.e. after administration/liquidation afaik. , so I guess I am going to have to wait a few years before I can off set any of these as losses.
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duck
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Post by duck on Jul 12, 2019 13:02:24 GMT
did you mean 'offsettable' against income? If so yes but only when the losses are crystallised i.e. after administration/liquidation afaik. , so I guess I am going to have to wait a few years before I can off set any of these as losses. Not necessarily the Lendy administration/liquidation 'should' be a lot more straightforwards than Col but we are in the hands of RSM.
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Greenwood2
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Post by Greenwood2 on Jul 12, 2019 19:58:30 GMT
I suspect a lot of people are going to claim incorrectly on Col, I don't know how HRMC are going to see this in tax returns and what they will do about it, but probably they will be claiming it back.
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Post by martin44 on Jul 12, 2019 20:07:40 GMT
Good point.. not being in col for some time and being fortunate enough to suffer no losses, (but i did elsewhere) i would simply claim the losses on the tax return... and leave HMRC to decide there and then...my outcome was positive, but as a last resort.. they can only say no.. Sorry but I don't agree with you. By making a claim against Col on your Tax Return you are knowingly making a false return unless you make it very clear what you are doing. The FCA has categorically stated that Col had no permissions and the FOI's that I hold show that Cols application remained at 'case assessment stage ' until they called in the administrators. Whilst I agree that making a claim might force HMRC into making a decision you would have to include very clear notes to show that you have added Col to your 'losses' (normally aggregated on the return) to avoid any problems with HMRC. The other downside is that a rush decision could be made to disallow which would mean a long hard fight to get the decision reversed. With G'ment departments it is always harder for them to reverse a decision than to make the 'correct' decision in the first place. I spent 3 years and many letters getting a VAT rebate when the HMRC website (advice I had followed) was wrong (proved at a Tax tribunal) and I had overpaid. Even in very simple cases getting a 'sorry I was wrong' decision is painfully difficult. Like all things Col related nothing is coming easily / quickly but personally I am holding back from making Tax claims wrt Col until the situation with the FCA is finally sorted. Maybe ive been fortunate, my experience of dealing with HMRC is quite the opposite, but as i said... they can only say no.
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bg
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Post by bg on Jul 13, 2019 7:55:45 GMT
Sorry but I don't agree with you. By making a claim against Col on your Tax Return you are knowingly making a false return unless you make it very clear what you are doing. The FCA has categorically stated that Col had no permissions and the FOI's that I hold show that Cols application remained at 'case assessment stage ' until they called in the administrators. Whilst I agree that making a claim might force HMRC into making a decision you would have to include very clear notes to show that you have added Col to your 'losses' (normally aggregated on the return) to avoid any problems with HMRC. The other downside is that a rush decision could be made to disallow which would mean a long hard fight to get the decision reversed. With G'ment departments it is always harder for them to reverse a decision than to make the 'correct' decision in the first place. I spent 3 years and many letters getting a VAT rebate when the HMRC website (advice I had followed) was wrong (proved at a Tax tribunal) and I had overpaid. Even in very simple cases getting a 'sorry I was wrong' decision is painfully difficult. Like all things Col related nothing is coming easily / quickly but personally I am holding back from making Tax claims wrt Col until the situation with the FCA is finally sorted. Maybe ive been fortunate, my experience of dealing with HMRC is quite the opposite, but as i said... they can only say no. I'm not making comment on whether this is or isn't a tax allowable loss but HMRC can do far worse than just saying no. If they come back in the future and challenge your return you will be forced to pay a fine plus interest (I know this from experience even when they agreed I had made a genuine mistake). The onus is on you to get it right in the first place and if they believe you have knowingly made an incorrect claim I believe the fine can now be up to 200% of the unpaid tax (I was fined 20%).
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withnell
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Post by withnell on Jul 14, 2019 18:14:45 GMT
I suspect a lot of people are going to claim incorrectly on Col, I don't know how HRMC are going to see this in tax returns and what they will do about it, but probably they will be claiming it back. I wish I was in a position where my income from P2P last year was greater than my losses on Lendy loans, let alone Collateral!
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Greenwood2
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Post by Greenwood2 on Jul 15, 2019 6:53:32 GMT
I suspect a lot of people are going to claim incorrectly on Col, I don't know how HRMC are going to see this in tax returns and what they will do about it, but probably they will be claiming it back. I wish I was in a position where my income from P2P last year was greater than my losses on Lendy loans, let alone Collateral! You can carry forward P2P losses, I think for up to four years, if that helps!
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