As a UK tax-payer, so far I’ve stuck to UK based alternative finance platforms. I’m open to the idea of trying out a couple of continental European platforms: more diversification, some new customer cashback offers and potentially higher returns (12%+).
However, I have two big questions to answer before I go any further:
- Tax. What implications would investing in EU platforms have on my UK tax? Are they properly equipped to provide statements for my annual tax return? Could I lose out on certain tax benefits? Would a non-UK income, with currency conversions etc lead to additional paperwork? I will try to answer these questions in this blog post.
- Currency Conversion. What are the transaction costs to convert from £ GBP to € EUR? If transaction costs are significant that would eat up a significant proportion of the returns. I will look at this in more detail in a later post, tax considerations permitting!
I spoke to HMRC and then got in touch with some of the larger EU platforms (Bondora, Mintos, Twino, Viventor, EstateGuru and Lendix) as a sample to find out how geared up they are for UK taxpayers. Read more “Euro based P2P Lending for UK Tax Payers”