Final guidance published
HMRC has published a note, Income Tax relief for irrecoverable peer to peer loans: final
guidance, which contains final guidance on how to apply the new income tax
relief for irrecoverable peer-to-peer (P2P) loans.
This tax relief is given under Chapter 1A of Part 8 Income
Tax Act 2007. The guidance will be included in HMRC’s Savings and Investment
Manual, SAIM 12000.
The relief allows P2P loans that become irrecoverable to be
relieved by the lender against interest that they receive from other P2P loans.
The guidance explains exactly which lenders will be eligible
and the relief they can claim.