Part ownership of a Ripple Wind Turbine, fancy it?

[Fintray]

Just in from Ripple:
As you may know we have been engaging with HMRC and HM Treasury regarding the tax treatment of Ripple members' savings for a number of years. Following back and forth between
Ripple, HMRC and James Cartlidge, Exchequer Secretary to the Treasury, HMRC came to the view that the ‘trading benefit’ of members’ bill savings should be treated as interest income. We then wrote to the Treasury asking that they introduce a tax relief on the trading allowance, like that which is available to home solar income and savings. They have, however, declined to create such a tax relief.

We want to stress that the vast majority of Ripple members will not face any tax on their bill savings, with or without a tax relief.

The trading benefit would only be subject to tax where a member breaches their annual interest allowance. The vast majority of people do not reach their annual allowance, so would therefore not be liable for any tax on their trading benefit.

[nowty]

I never expected any other outcome, but on the plus side maybe Ripple will finally ditch the 120% generation vs import crap.

[John_S]

Another poorly worded email from Ripple.

"Are my Ripple savings now subject to tax?

The short answer is very likely no. The majority of Ripple members will not pay any tax on any of their savings. We've seen several posts on social media claiming all Ripple savings are subject to tax. This is not true and can deter people from signing up."

The honest answer is that all the income (but not the return of investment) is subject to tax, just as all interest income is subject to tax. However, for many investors it will be subject to tax at the nil rate as it is within the interest income allowance.

This might be pedantic but it is hugely misleading for Ripple to make the statements that they are making. It would be much more honest to say up front that it is subject to tax but in many/most cases at the nil rate because of the personal savings allowance.

I don't see much mileage in asking for a similar relief like that which is available to home solar. Only people with the smallest brain would not realise that many investors, like most of us, might have home solar and Ripple shares and there is no logic in getting two bites of the cherry.

[Joeboy]

I never expected any other outcome, but on the plus side maybe Ripple will finally ditch the 120% generation vs import crap.

+1, the only point worth making.

[ecogeorge]

I never expected any other outcome, but on the plus side maybe Ripple will finally ditch the 120% generation vs import crap.

Hmm -I appear to have totally overestimated my consumption ....
George

[Joeboy]

https://community.rippleenergy.com/gene ... 4IBByPSr90

I suggested a window later in the investment cycle as Ripple have stated that they want everyone to be able to.invest. I'd be uncomfortable thinking I'd muscled a £100 investor out. Hence the later window for fat bustards like me.

It is a natural expansion path, they'd be daft not to?

The more likes the better chance of it being implemented.

[smegal]

Isn't the annual interest allowance £1000 for basic rate and £500 for higher rate tax payers.

Anyone with some savings (which will be most ripple members) will be getting close to those thresholds now that savings actually earn interest.

Or am I missing a point?

[John_S]

Isn't the annual interest allowance £1000 for basic rate and £500 for higher rate tax payers.

Anyone with some savings (which will be most ripple members) will be getting close to those thresholds now that savings actually earn interest.

Or am I missing a point?

No. You have it spot on.

[Adokforme]

Isn't the annual interest allowance £1000 for basic rate and £500 for higher rate tax payers.

Anyone with some savings (which will be most ripple members) will be getting close to those thresholds now that savings actually earn interest.

Or am I missing a point?

No. You have it spot on.

Presumably having savings wrapped in ISA's then you have most or all of the allowance still available?

[Fintray]

Isn't the annual interest allowance £1000 for basic rate and £500 for higher rate tax payers.

Anyone with some savings (which will be most ripple members) will be getting close to those thresholds now that savings actually earn interest.

Or am I missing a point?

No. You have it spot on.

Presumably having savings wrapped in ISA's then you have most or all of the allowance still available?

Yes, ISA's are exempt from your annual allowance.