Following today’s Autumn Statement, the Chancellor George Osborne announced new measures to support the peer-to –peer lending industry. These include:
• The Government’s intention to review financial regulation which currently stands in the way of institutional lending through peer-to-peer platforms;
• The government will introduce a new relief to allow individuals lending through P2P platforms to offset any losses from loans which go bad against other P2P income. It will be effective from April 2016 and, through Self-Assessment, will allow individuals to make a claim for relief on losses incurred from April 2015; and
• The government will consult on the introduction of a withholding regime for Income Tax to apply across all P2P lending platforms from April 2017. This will help many individuals to resolve their tax liability without them having to file for Self-Assessment.
Commenting on the announcement, Christine Farnish, Chair of the Peer-to-Peer Finance Association, said:
“We welcome today’s Autumn Statement from the Chancellor and his endorsement of Peer-to-Peer lending. The reforms to debt relief will provide greater certainty for lenders and will begin to create a level-playing field for our industry. We are also pleased that Government has committed to review the ‘lending in the course of business’ anomaly. Our sector is playing an important role for both lenders and savers, transforming the financial industry as it does so, and I am happy to see that the Government recognises this.”
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Notes for Editors
About the P2PFA:
The Peer-to-Peer Finance Association is a UK trade body that maintains Rules and Operating Principles that must be followed by all Member organisations to protect the interests of all their consumer and small business customers. The P2PFA publishes quarterly figures showing industry data and the cumulative lending. On April 1 2014, peer-to-peer lending became regulated by the Financial Conduct Authority.
The P2PFA’s current membership includes Funding Circle, RateSetter, Zopa, ThinCats, LendInvest, Madiston LendLoanInvest, MarketInvoice, Lending Works and Landbay.
For more details, please visit the website www.p2pfa.info