P2P Lending Tax Clarification

Adren

Hi there,

I have searched both boards, and askaboutmoney a little and have discovered that interest that is earned, must be declared as income tax.

However, my question is, if the money stays within the platform, and is automatically reinvested, do I still have to pay income tax every year?

If this is the case, that I must pay tax on all interest yearly, what happens if my investment takes a large hit in year 3, and potentially lose half my investment, can I claim back tax I have paid previously?

Many thanks,
Mark

ct5amr2ig1nfhp

Short answer yes. The interest is treated as income tax.

The revenue guidelines for p2p lending should help you. See here. Specifically "the taxation treatment of interest earned by a company or individual lending to companies or non-residents through peer to peer lending or crowd funding."

Strettie11

If your investment takes a hit you are not allowed set any bad debt against your interest earned

vargoo

In certain
circumstances Pay Related Social Insurance (PRSI) may also be payable on the interest received.

Eh, very helpful this, is it or isin't it?

ct5amr2ig1nfhp

Not everyone has to pay PRSI. There are exceptions etc. So the statement is factual. ��

vargoo

Under what section on the Form12 do you actually put this under?

scheister

vargoo wrote: »

Under what section on the Form12 do you actually put this under?

I have taxed them as below
Linkedin/grid finance untaxed income arising in the state
Non Irish income other foreign income including rent