What is the Innovative Finance ISA?
At the 2015 Summer Budget, it was confirmed by HM Treasury that holding peer-to-peer (P2P) loans within Individual Savings Accounts (ISAs) would soon become a reality. Whilst there are still some details which need to be clarified, P2P lenders are expected to be able to enjoy tax-free interest courtesy of the new Innovative Finance ISA (IF ISA).
What does the IF ISA matter to me?
This is one of the most important changes to ISAs in more than a decade and, quite simply, it makes investing in P2P loans even more attractive.
Under the current rules, if you want to invest using your tax-free ISA wrapper, you’re restricted to:
- cash accounts, which can pay low rates of interest
- stocks and shares, which are riskier but offer the potential for higher returns.
The new IFISA lets you take advantage of the attractive rates of interest on offer from P2P loans, and receive your interest tax-free.
How does the Innovative Finance ISA (IF ISA) work?
We are still awaiting the final rules from HM Treasury as to how the new IF ISA will operate. In addition, only P2P firms which have received full, rather than interim, authorisation from the Financial Conduct Authority will be able to offer IF ISAs.
To receive further updates and to ensure you receive notification as soon as we are in a position to offer the new IF ISA, please complete the e-mail registration form to the right.
Register your interest
To receive further IFISA updates, and to ensure we notify you as soon as we are in a position to offer the new IFISA, please complete the form below.