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Taxopedia  ›  P  ›  Peer-to-peer loans
P · Glossary

Peer-to-peer loans

Lending money to others online — interest is taxable, losses partly relievable.

Peer-to-peer (P2P) lending connects lenders to borrowers via platforms (Funding Circle, Zopa). Interest is taxable as savings income. Losses can be set against P2P interest. Innovative Finance ISA wrapper makes interest tax-free.

Related terms

Savings interestInterest from bank accounts, bonds, P2P — taxable above the Personal Savings Allowance.ISA (Individual Savings Account)Tax-free wrapper for savings or investments — £20,000 annual limit.

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