Blog
12th November 2014

ISA Update

 

The Chancellor announced in his 2014 Budget that the Government would make Peer-to-Peer loans eligible for inclusion within Individual Savings Accounts (ISAs). In October, it was announced that the Government will consult on new Peer-to-Peer lending ISAs. The ISA would be available for people who place their funds in Peer-to-Peer platforms. ISAs that are planned to be introduced will not be protected by the FSCS but will be regulated by the FCA. Peer-to-Peer platforms offer an element of protection instead, a Provision Fund. Provision Funds tend to be at the discretion of Directors but are in place to cover any losses that may be incurred if a borrower defaults.

 

ISA inclusion will be available for businesses and individuals, companies have to display a good track record to qualify. If ISAs are introduced they will enable business growth and aid the process by which businesses seek funding. This consultation period will set out proposals to change ISA rules to allow Peer-to-Peer loans to be held within them; in places it seeks views on the relative merits of different options for changes and on the consequences of such changes.

 

The ISA consultation period will be closed on the 12th December 2014, the Government will then analyse the responses and publish a ‘Summary of Responses’ document. The document will review the responses received, and state the Government’s going forward steps. The Government plans to use this as the basis for specifying the Peer-to-Peer loans that are eligible for ISA inclusion.

 

Consumers are using Peer-to-Peer platforms as they are uninspired by the low interest rates being offered by high street suppliers and are seeking higher return on their funds. The consumers are now finding alternative routes to place their funds in such as; P2P Platforms which offer above average interest rates. The consultation period illustrates the vote of confidence from the Government which is a hugely positive element for the Alternative Finance Industry as it is being viewed as a major player within the Finance Industry.

 

Please see here for further information on Open consultation ISA qualifying investments: consultation on including Peer-to-Peer loans

Bear in mind

Wellesley Property Bond

  • The Wellesley Property Bond has a fixed rate and duration.
  • The Wellesley Property Bond is an ISA eligible investment, allowing you to earn tax free interest on your investment. Please note, tax allowances and the tax efficient benefit of ISAs could change in the future.

Your capital is at risk and interest payments are not guaranteed. Investment in any Wellesley Property Bonds are not covered by the Financial Services Compensation Scheme (FSCS). In the event of a loan default or if Wellesley Secured Finance Plc becomes insolvent, you may lose some or all of your investment, including interest payments due. If you are in any doubt about making an investment or do not fully understand the risks, you are strongly recommended to consult an independent professional financial adviser before you subscribe.

Wellesley is the singular name for the following collective of companies, Wellesley Group Limited (09811856), Wellesley & Co Limited (07981279) and Wellesley Finance Plc (08331511). Wellesley Secured Finance Plc was established as a special purpose vehicle for the sole purpose of issuing asset backed securities and is not part of Wellesley Group.

The information contained in this website has been approved as a financial promotion for UK publication by Wellesley & Co Limited (FRN 631197) who is authorised and regulated by the Financial Conduct Authority (FCA). Wellesley Property Bonds are issued by Wellesley Secured Finance Plc (the Issuer) and is not authorised or regulated by the FCA.

Wellesley & Co Limited and Wellesley Finance Plc are registered in England and Wales and their registered office and trading address is at St Albans House, 57/59 Haymarket, London SW1Y 4QX. The registered address for Wellesley Secured Finance Plc is at 1 Bartholomew Lane, London, EC2N 2AX.

 

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