UK personal savings allowance on foreign P2P income

kennethmac2000

Hey folks,

Does anyone know if the UK personal savings allowance applies to foreign peer-to-peer lending income, or if it only applies to income from FCA-regulated (UK) P2P providers?

I can’t seem to find an answer to this anywhere on the web.

londoninvestor

Yes - the PSA applies to interest received in general, and lending income is regarded as interest for tax purposes, whether it's from a foreign source, a regulated UK source, or indeed an unregulated UK source (such as lending to friends and family).

I agree that it's difficult to get answers on the web, perhaps because the definition of "interest" is a matter of common law and not written down in statute.