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New HMRC brief.
Revenue and Customs Brief 2/2016 sets out HMRC’s position on the tax liability of interest paid on peer-to-peer loans (ITA 2007, part 15 ch 3).
The legislation is to be amended as a result of last summer’s consultation on how to change the obligation to deduct tax from interest paid on these loans. In the meantime, before the government makes the changes, interest payments may be made gross.
This will apply to payments made by:
- a UK borrower to a UK peer-to-peer platform;
- a UK peer-to-peer platform; and
- any intermediary to or from a UK peer-to-peer platform.
