Blog
25th March 2015

Budget 2015 – New Tax-Free Savings Allowance Will Apply to Peer-to-Peer Lending as well as Cash Savings

budget 2015

During last weeks budget, Chancellor George Osborne announced that ISAs would become much more flexible, and non-ISA cash savings would be tax-free for the first £1000 they earn.

It wasn’t clear at the time whether or not these changes would also apply to peer-to-peer lending, but the Treasury has now been confirmed that they would indeed be included. From April 2016, the first £1000 of peer-to-peer earnings will be tax-free, with the limit capped at £500 for higher rate taxpayers.

It must be noted that this change applies across a peer-to-peer lenders full allowance, and considers returns from any savings account including banks and building societies.

The peer-to-peer industry is thriving, with over 2.1 billion lent out through P2P loans the final quarter of 2014. In the same quarter for 2013, this amount was just £947 million.

The Treasury’s recent announcement is great news for this growing industry and of course many Wellesley & Co. lenders. Those considering alternative forms of investment will also welcome the changes.

Wellesley & Co. are AltFi’s Fastest Growing Peer-to-Peer Lender of 2014, offering rates of return up to 6%. The firm is regulated by the Financial Conduct Authority.

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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