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Peer to peer lending

Guidance for individuals investing in peer to peer loans, reporting interest and claiming losses from loans that default.

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Peer to peer lenders who suffer bad debts on peer to peer loans from 6 April 2015 will be able to claim relief in their tax returns. Peer to peer lenders who suffer bad debts on peer to peer loans from 6 April 2016 and relief conditions are met, may also set these bad debts against interest received on other peer to peer loans made through the same platform without needing to make a claim. Further information can be found in HMRC ’s guidance on Income Tax relief for irrecoverable loans .

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