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Claiming relief on P2P loans

Article ID: 2615
Last updated: 13 Jan, 2020

To claim relief on peer-to-peer (P2P) loans for the current tax year (2018/19), you will need to make a manual reduction before entering figures onto the return.

Please see the guidance published by HMRC (Income tax relief for irrecoverable peer to peer loans guidance) for more information. Specifically, page 14 states that for 6 April 2016 onwards:

The lender can also claim relief on P2P loans that become irrecoverable on or after 6 April 2015 against other interest received in the same tax year from other P2P loans that were made through the same platform as the now irrecoverable loan. This relief should be claimed in a tax return. In order to claim relief in a tax return the lender should deduct their available relief from the P2P interest that they have received in that year before entering the figure in their tax return.

Claiming relief on the tax return

Using HMRC Forms mode

  1. Go to Additional Informaton > Page 1.
  2. Deduct the irrecoverable debt from the interest and enter the amount in Box 3.

Using SimpleSteps mode

  1. Go to Other income > Savings and investments > Any other UK Interest.
  2. Deduct the irrecoverable debt from the interest and enter the amount in amount before tax (gross) box.
Article ID: 2615
Last updated: 13 Jan, 2020
Revision: 9
Views: 559
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Also listed in
folder Tax Return Production -> SA100 Individual Return