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1 min to discover why P2P is a great for investors


Barriers. Who needs them? They’re like a one-way street when you’re late for work. Or the dry cleaners being shut when you need a suit urgently cleaned for an important meeting…

So investors and LendingCrowd welcome yesterday’s news of the government’s decision to remove barriers that restrict the growth of peer-to-peer crowdlending and crowdfunding platforms.

From 2016, tax changes will mean that investors lending through P2P platforms will be able to offset any losses from bad loans — for example when a borrower defaults against other P2P income. The changes will be introduced as part of the government’s endeavors to boost competition in the banking sector.

Music to the ears of people investing in UK small businesses

The proposals could be music to ears of people investing in UK small businesses via crowdlending platforms. The UK chancellor, George Osborne, revealed a package of measures to support alternative financing – part of a larger strategy to inject competition into the banking sector.

He unveiled, in his Autumn Statement, tax and regulation changes designed to ‘take away’ barriers amid the expansion of crowdfunding and peer-to-peer lending platforms. From 2016, the tax changes will enable those lending through P2P platforms to offset losses from bad loans — for example when a borrower defaults against other P2P income.

Investors could claim for tax relief

According to the government, investors could claim for tax relief on losses incurred as of April next year.

Under a consultation, it is deciding whether to include debt-based crowdfunding within tax-free ISAs. Crowdfunding differs from to P2P as its emphasis is more on start-ups and early-stage businesses.

So goodbye to barriers.

Hello to greater opportunities in investing in UK small businesses via Crowdlending platforms!

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Lending Crowd

Lending Crowd

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If you invest through LendingCrowd you should understand that your capital is at risk.

LendingCrowd is the trading name of Edinburgh Alternative Finance Limited, Company Number SC468392, authorised and regulated by the Financial Conduct Authority (Firm reference number 670991). LendingCrowd and its products are not covered by the Financial Services Compensation Scheme.

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LendingCrowd is working with the British Business Bank to help deliver CBILS loans to SMEs affected by the Covid-19 pandemic. Find out more: