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Posted Thu, 19 May 2022 12:23:34 GMT by inset-snouts
Hello, I am looking into investing in peer-to-peer loans on a platform registered in Croatia. The loans on the platform originates from lending companies registered in various countries. I understand the interests must be declared in the form SA106 under the section "Interest and other income from overseas savings" but I am unsure which country to use. For example, if I lend money to loans on the platform registered in Croatia, originating from a lending company registered in Poland, granted to a borrower residing in Czech Republic, which country should I use in the SA106 form? (Everything is in EUR.) Can all the interests earned on the platform be declared as coming from Croatia? Especially considering that the platform doesn't withhold any tax so it seems irrelevant to break all the loans down per country of the lending company or per country of the borrower. Thank you
Posted Mon, 23 May 2022 13:49:02 GMT by HMRC Admin 17

Hi,
 
Please see the notes on SA106 under the heading Country or Territory list / Interest and other income from overseas savings//

Foreign notes    .

Thank you.
Posted Mon, 23 May 2022 14:10:50 GMT by inset-snouts
Hello, Thank you for your answer. Unfortunately, it is not answering my question. The notes on SA106 provide no information as to how to determine the country from which the income originates. To reformulate in case it helps, I am wondering which of the following countries is deemed to be the country of origin of the interests generated by a peer-to-peer loan: * The country in which the peer-to-peer lending platform is registered. * The country in which the lender -- lending the money to the borrower and selling the claims on the platform -- is registered. * The country in which the borrower resides. Thank you
Posted Wed, 25 May 2022 14:18:53 GMT by HMRC Admin 2
Hi,

If you are being paid the interest from the platform in Croatia, then this will be the country of origin. 

Thank you.

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