bigfoot12
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Post by bigfoot12 on Nov 9, 2015 21:59:42 GMT
Does everyone pay 0.25% on SM sales?
I ask because there seem to be a lot of D loan parts on sale that are less than 2 weeks old. They are on sale for a 0.3% premium in many cases. When I deduct 0.25% sales charge, and a few days they earned nothing that doesn't seem to be a great return for them. The loans have no comments and, obviously, haven't been late so they are not selling for that reason. I wonder if early members were offered reduced fees (like Zopa) or perhaps larger investors were?
I assume that accrued interest is taxable like interest?
Any thoughts?
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Post by GSV3MIaC on Nov 9, 2015 22:08:35 GMT
Yes, accrued/sold interest is taxed same as regular interest. I think they are being used as a 'money park', or maybe someone's bot went awry .. as you say, even with full automation, it doesn't seem like a great return (although the running interest rate is not bad compared to a 12 month A+!). Probably the vendor hopes you won't buy them for 3 weeks (and if you don't they'll probably be dumped on autobodge at par, since 0% or -0.3% makes never-no-mind difference after 3 weeks).
(as far as I know, everyone except FC, has to pay the 0.25% to sell .. and FC are only flipping A+, A and B so far, if they actually have any listed at all).
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bigfoot12
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Post by bigfoot12 on Nov 10, 2015 0:23:08 GMT
I did consider FC themselves, but the Ds I was looking at are all small so there would have been no need for FC to buy any parts. And assuming sell at par, 0.25% earning 14%, but with 1 week at 0% it seems to be 8.8% which is okay, but not special.
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Post by GSV3MIaC on Nov 10, 2015 8:46:52 GMT
No, the buyer is NOT liable for all the tax. The seller gets taxed on the interest they sell, just as if they had collected it.
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sl75
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Post by sl75 on Nov 10, 2015 8:49:42 GMT
As the buyer pays the platform fee and is liable for all the tax No, the buyer is NOT liable for all the tax. The seller gets taxed on the interest they sell, just as if they had collected it. Remind me which of you is qualified to give tax advice to all and sundry?
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bigfoot12
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Post by bigfoot12 on Nov 10, 2015 10:20:11 GMT
As the buyer pays the platform fee and is liable for all the tax No, the buyer is NOT liable for all the tax. The seller gets taxed on the interest they sell, just as if they had collected it. Remind me which of you is qualified to give tax advice to all and sundry? Has anyone compared their income with the tax statement to see where FC put the interest? I just tried for the last few days, but I can't in any way reconcile the tax statement with my statement. The numbers look very wrong. I will try with a previous period when I have more time. EDIT: I have just repeated that exercise for a day 12 months ago and the tax statement provided to me by FC included accrued interest on a loan I sold that day. Everything reconciles as I would expect. I don't know what is going wrong with my tax statement for this week - perhaps they run some month end process? I haven't looked to see if the accrued on a purchase is deducted. So the FC tax statement agrees with GSV3MIaC.
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pom
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Post by pom on Nov 10, 2015 11:59:26 GMT
Remind me which of you is qualified to give tax advice to all and sundry? Has anyone compared their income with the tax statement to see where FC put the interest? I just tried for the last few days, but I can't in any way reconcile the tax statement with my statement. The numbers look very wrong. I will try with a previous period when I have more time. EDIT: I have just repeated that exercise for a day 12 months ago and the tax statement provided to me by FC included accrued interest on a loan I sold that day. Everything reconciles as I would expect. I don't know what is going wrong with my tax statement for this week - perhaps they run some month end process? I haven't looked to see if the accrued on a purchase is deducted. So the FC tax statement agrees with GSV3MIaC. Thanks for highlighting this - I'd assumed (and hadn't bothered looking) that there wouldn't be any tax info available until the end of the tax year and so had been trying to guess what my declarable earning figures might end up like, so really handy to be able to check. Almost a shame I'm selling up 
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Post by GSV3MIaC on Nov 10, 2015 13:24:38 GMT
As the buyer pays the platform fee and is liable for all the tax No, the buyer is NOT liable for all the tax. The seller gets taxed on the interest they sell, just as if they had collected it. Remind me which of you is qualified to give tax advice to all and sundry? I'm a CII FPS certificate holder, although I don't practise any more. Does that count?
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wysiati
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Post by wysiati on Nov 10, 2015 17:11:25 GMT
Remind me which of you is qualified to give tax advice to all and sundry? I'm a CII FPS certificate holder, although I don't practise any more. Does that count? IIRC, to be authorised for retail advice you would need a Level 4 qualification (or equivalent) + SPS.
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Post by GSV3MIaC on Nov 10, 2015 17:54:59 GMT
Like I said, I don't practise any more so I have not kept my qualifications up to date, nor even checked what the requirements are this week.
I =was= qualified as an IFA, and I am sure I am right about the tax position on sold interest, but you should consult your tax advisor anyway. 8>.
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ablender
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Post by ablender on Nov 10, 2015 19:33:38 GMT
I do not think that anything that was being said here counts as advise. Two people were discussing between themselves. I do not see anything else.
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