Income Tax Act 2007 section 412F

Assigned loans treated as made by the assignee etc

Section 412F deals with the tax treatment of peer-to-peer loans that a person acquires by assignment rather than by making the original loan, ensuring they can claim relief for irrecoverable amounts in the same way as an original lender.

• Where a person acquires the right to recover a loan's principal by assignment through a peer-to-peer platform operator, the loan is treated as if they had made it themselves through that operator
• The person must have paid consideration for the assignment and must not have further assigned the right to anyone else
• Any irrecoverable amount eligible for relief is capped at the price the person paid for the assignment, less any principal they have already recovered
• This ensures that assignees cannot claim relief for more than their actual economic exposure to the loan