There is some good news to share with lenders today, as the Treasury has this week confirmed to Zopa and the P2P lending industry that it will include P2P within the personal savings allowance as outlined in the 2015 Budget.
This exciting change means that for basic rate tax payers, the first £1000 of interest you earn in a tax year will be tax free and for higher rate tax payers the limit will be £500.
It is important to note that this applies across your full allowance, so it takes into account other forms of returns from bank savings accounts.
We think that this is a great move for our lenders and very much welcome the change by the Treasury.
Here is what Giles our CEO had to say about the positive change, “It’s fantastic news that The Treasury has confirmed the new savings tax break will also apply to interest earned from P2P lending. The news is very exciting as the vast majority of Zopa’s 58,000 lenders could lend tax free from next April. I expect this will be a huge boost to the industry and will attract a large number of new consumers to start lending and earn returns of 5+% tax free.”
We hope this is a benefit to your lending and if you have any questions about how this impacts your lending then please don’t hesitate to call our customer team on 02075806060 or email via firstname.lastname@example.org.
Roll on April.