First and foremost, Lendy cannot offer any accounting, tax or legal advice. We also do not, and cannot, offer investment advice. We would recommend that you seek advice from an independent financial advisor, solicitor and/or accountant. You may wish to visit unbiased.co.uk to search for an advisor in your area.
Secondly, we would invite you to read HMRC's new guidance document titled ‘Income tax relief for irrecoverable peer to peer loans, Final Guidance’, which can be found online.
Our application of the label ‘non-performing loans’ is not based on what we gauge the prospects of recovery to be, but on whether a borrower is able to make payment within the overdue period (0-180 days) and/or Lendy has sight of how payment will be made within that period.
As we only offer loans at a maximum of 70% LTV we hope to be able to avoid a situation where the full amount of any loan cannot be recovered if a borrower is unable to repay the loan.
Loans which are non-performing or on which we have initiated recovery proceedings are not deemed irrecoverable by Lendy unless otherwise stated.
Should we ever become concerned that a loan on our platform could not be successfully recovered (in full or in part) we would swiftly inform our investors by update and/or email.
For information on the action we take when a loan becomes 'non-performing' please see our Collections and Recoveries policy.