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Trading loss???

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Client invest some money in Investly

Some is invested in UK and other in EU

EU investment pays back €8,000 in interest

However the UK makes a lost of £12,000

Is it a trading loss?  ... Our Tax help line thinks it is


Replies (7)

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By Cazzie B
14th Sep 2021 16:57

Its ok found my answer

If a peer to peer loan isn’t repaid the lender can set the loss they suffer on the loan against the interest they receive on other peer to peer loans before the income is taxed.

Tax relief is available to peer to peer lenders who:

are liable to UK Income Tax on their peer to peer income
make loans through peer to peer lending platforms that are authorised by the FCA
are the legal lender at the time when its agreed that the loan has gone bad

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By David Ex
14th Sep 2021 17:02

For those, like me, who were wondering, despite the name and all the references to "invest", it's invoice financing. I suppose that is, in theory, a trade. What does the legal agreement with the company say? Might be worth looking at the badges of trade too.

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By Tax Dragon
14th Sep 2021 17:35

What's this got to do with peer-to-peer? It's debt factoring, isn't it?

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paddle steamer
14th Sep 2021 17:53

What is the trade?

Is what you believe the trade to be a regulated activity?

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By Wanderer
14th Sep 2021 18:06

Investly Ltd, a company that reports its old Registered Office in its accounts 3 years after it has changed. There's nothing like attention to detail.

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Replying to Wanderer:
By Hugo Fair
14th Sep 2021 19:10

About the same as that shown by 'investors' who don't do the most basic diligence checking (like a free search at Co's House).

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