Peer-to-peer lending sites: MSE guide discussion

jamesd

Unlikely to be able to transfer in one step but you probably will be able to put some money into the ISA then use a bid or offer to purchase that much from yourself if your offer or bid is the best one. Repeat until it's all moved.

takesyourchances

jamesd wrote: »

Unlikely to be able to transfer in one step but you probably will be able to put some money into the ISA then use a bid or offer to purchase that much from yourself if your offer or bid is the best one. Repeat until it's all moved.

Thanks James for that, not as simple as a one button transfer Once it is up and running, I guess we will work it all out and it would be nice if we could get around transferring in this way and bit by bit get it sheltered.

Thanks!

TheShape

I believe it's the ISA rules which prevent a direct transfer of an investment from a non-ISA account to an ISA with investments having to be purchased on the open market. Coincidentally, it would probably have have been easier to sell and purchase your own investments when Ablrate allowed bid and offer prices to be set to multiple decimal points. Very keen to see an Ablrate and Moneything IFISA.

nushnush

i think the isa rules prevent you selling your none isa loans to yourself inside an isa, i also believe that the same rule prevents a trade between married couples as well


The specific clause that spells out this restriction is 6.14a of the HMRC's "ISAs: guidance notes for managers", full document available here: https://www.gov.uk/government/publications/guidance-notes-for-isa-managers

6.14a For any acquisition of investments in an ISA, the conditions that must be satisfied are as follows.
(a) The investments must not be purchased from the investor, or from the investor’s spouse or civil partner.

elephantrosie

so it seems like we are all going to be going around in circles exchanging loans to build up our isa.

justme111

Not sure there is an issue. You put your loan parts for sale at a asocial hours and buy them a second later. Open market condition complied with.

nushnush

justme111 wrote: »

Not sure there is an issue. You put your loan parts for sale at a asocial hours and buy them a second later. Open market condition complied with.

pretty much what i tried to do on abundance but i was prevented by them.

justme111

It was possible to do on FS , one would have to see a particular platform's policy. Curious as to how was it possible for Abundance to stop people doing that - may be they do not have secondary market

jamesd

nushnush wrote: »

i think the isa rules prevent you selling your none isa loans to yourself inside an isa, i also believe that the same rule prevents a trade between married couples as well...
6.14a For any acquisition of investments in an ISA, the conditions that must be satisfied are as follows.
(a) The investments must not be purchased from the investor, or from the investor’s spouse or civil partner.

It appears that for P2P HMRC have instead accepted such deals provided they are carried out via a market available to anyone, replacing the general rule. That's what's happening on one of the existing platforms after discussion with HMRC. The platform did restrict the maximum permitted mark up or down to 1%, lower than they previously allowed.

In essence they seem to take a "the specific trumps the general" approach and the open market is in the IFISA rules later in the guidance notes.

Since this is relatively new they could change what they will accept in the future.

jamesd

A new 13% loan just started on Ablrate, renewable heat and exported electricity via anaerobic digestion on a farm. This joins the still available 13% for refurbishing cabins loan. With two loans having just repaid today I suggest not waiting long if you're interested. I doubt they will still be around on Monday and they might not last this evening before filling. They both look reasonable to me and I've put money into them both.