Withdrawals from our Access Accounts are slower than usual as we are no longer operating in normal market conditions as a result of Coronavirus. There is currently a queuing system in place, click here to find out more.
Withdrawals from our Access Accounts are slower than usual as we are no longer operating in normal market conditions as a result of Coronavirus. There is currently a queuing system in place, click here to find out more.

P2P investors to earn a further £10m in 2015-16 thanks to bad debt relief

P2P investors to earn a further £10m in 2015-16 thanks to bad debt relief

“Tax has a disproportionate effect on returns for P2P investors, but allowing investors to offset losses against tax reduces that burden. According to Government figures, bad debt relief on P2P loans will save investors £10m on interest earned over the next year. This amount should increase to £15m on interest earned in 2016-17 and £20m on interest earned in 2017-18.

“The amount saved per individual will vary depending on circumstances, but an investor with £10,000 in P2P loans earning 10% gross interest and experiencing losses of 1% would expect to retain an additional £40 interest at the higher rate of tax, earning £640 rather than £600 after tax.

“This is another sign that the Government is firmly behind peer-to-peer lending: George Osborne has rightly recognised that investors lending through P2P platforms are the victims of a tax trap, and taken a positive step to help them. At the same time, the Government expects more from P2P lenders – we will be required to withhold tax at source from 2017 – but this is a reasonable step.”

- March 19, 2015