There are a raft of tax provisions that are going to make individuals who lend money pay less tax, including:
From 6th April 2015 a £5,000 zero % band for basic rate taxpayers.
From 6th April 2016 £1,000 interest tax free for basic rate taxpayers (£500 for higher rate tax payers).
It is anticipated Peer to Peer lending will be allowed to be held in ISAs in the Government’s second 2015 budget next week.
Therefore, there is potential for an extra £6,000 per annum tax free income per individual.
Philip Eagle, Tax Director, Hallidays Limited