Commentary

E1.405A Peer-to-peer interest receipts

Personal and employment tax

E1.405A Peer-to-peer interest receipts

E1.405A Peer-to-peer interest receipts

Peer-to-peer lending is a relatively new type of business arrangement. Peer-to-peer lending sites are, in essence, an intermediary service connecting investors who have money available to lend with individuals, partnerships or unincorporated bodies who need to borrow. The investor puts in a lump sum using the peer-to-peer platform and this is then lent in small sub-loans (of £25,000 or less) to a number of borrowers1. The breakdown of the investment into multiple small sub-loans, spreading the risk of default across several borrowers, is the novel aspect which peer-to-peer lending brings to retail investment. The ability to

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