Lendy P2P losses

[2912pwil]

Greetings all.

I invested somewhat in various(3) peer-to-peer schemes. With my eyes open, knowing they were high risk. Lendy as you may well know is going ****-up and it looks like I will have lost quite a bit. The other 2 schemes have been rewarding.

No sympathy wanted, my decision to invest, my fault, but as I'm 72, currently alive & well with 7 grandkids, compared to that any loss through an obviously risky scheme is nothing. Plus paying for Covid & Brex**** is likely to be much more painful - for everyone: Sympathy from me towards those suffering now or in the future.

But, tax question: Clearly I declare income from stocks, shares, bank accounts etc etc & P2P income. Is there any way I can legitimately claim losses from Lendy P2P in these sort of circumstances??

Best wishes to all, thanks in advance, live long and prosper!

[ben_power]

Hi 2912pwil,

Sorry to hear about you being caught up in this.

Sadly, I don't suspect there's much you can do although I am not a tax specialist, I'm sure somebody will be able to help on this website though.

You may be able to offset the capital loss from any other capital gains you might have this year. In the 2020/21 tax year your CGT allowance is £12,300 meaning if you 'lost' £1,000 you could essentially utilise £13,300 of gains elsewhere before paying CGT. This might ne a useful time to consider selling/crystallising gains in other investments but you should seek advice from an Independent Financial Advisor. A good opportunity to reduce risk in other investments or to utilise your ISA if not already done so.

I am also aware of 'share loss relief' which does allow you to offset losses in shares against income tax however, there's specific criteria that needs to be met and I do not think that Lendy will qualify, might be worth exploring.

Good luck with it.

[2912pwil]

Thanks Ben...

Mostly for the benefit of anyone else looking, turns out there is some small help - it's complicated, detailed but here....
https://p2pindependentforum.com/thread/12601/lendy-distressed-loans-loss-relief

Cheers all!