Interest paid on Loans, Bonds and Loan Notes are paid gross, so you would be responsible for the payment of any income tax due on the interest you receive.

Investors can reinvest their interest in any open investment on the platform without having to meet the normal minimum investment requirements. You can re-invest your interest and maintain the tax-free status of your money in your IFISA, and earn interest on your interest.

The minimum amount you can re-invest is £100, although you can Add funds to your account to meet this amount, if you do not have enough interest.

Once your ISA application is complete the relevant FCA regulated company managing the ISA will be in contact to explain the next steps.

The P2P account is our standard account. Investments held in your P2P account are eligible to be included in your Personal Saving Allowance, allowing you to earn up to £1,000 of interest tax free.

Our ISA is like the other categories of ISA in the respect that the funds and investments you hold within in your ISA will qualify for tax-free interest. You will be able to accumulate your interest tax-free within your ISA as you would be able to in a stocks & shares ISA and a cash ISA.
Any funds withdrawn will lose their ISA status.

If an ISA holder passes away, their investments and cash held in the ISA can be passed to the spouse and retain its tax-free status.

An investor can transfer all of the current year’s ISA subscriptions, or all or some of previous years’ ISA subscriptions. This means that you cannot transfer this year’s subscription unless your transfer the full amount (i.e. by selling your peer to peer investment(s)). You can however, transfer part of any previous years subscriptions that have been transferred to us.

We will add your funds to your ISA balance within 1 business day of us receiving your funds. However, it can take up to 5 business days for the funds to appear from leaving your account.

The timeframes to transfer an ISA can vary dependent on your existing ISA provider and the type of ISA you wish to transfer. For a Cash ISA the timeframe should not be greater than 15 business days in total. For a Stocks & Shares ISA the timeframes can be longer dependent on whether your existing ISA provider has to liquidate your holdings. You should allow up to 30 business days for the transfer. For all transfer requests, we will process and send out your ISA transfer form to your existing ISA provider within 1 business day of us receiving your transfer form. We will then on a periodic basis talk to your ISA provider to ensure that the transfer is processed quickly and efficiently.

The overall ISA limit of £20,000 can be split between a Cash ISA, a Stocks and Shares ISA, and an Innovative Finance ISA as the investor wishes.

Investors do not have to declare income or gains from an ISA on their tax returns, unless the ISA subscription has been made void. Capital losses in respect of ISA investments are disregarded for the purposes of capital gains tax.

To be eligible to subscribe to an Innovative Finance ISA an investor must:

  • Be aged 18 or over
  • Be resident in the United Kingdom or, if not a resident, be performing duties as a Crown employee serving overseas and paid out of the public revenue of the United Kingdom (typically a serving member of the armed forces, or a diplomat), or be married to, or in a civil partnership with, such a person
  • Not have subscribed to another ISA of the same type in that tax year otherwise than by way of additional permitted subscriptions, flexible ISA replacement subscriptions, defaulted cash account subscriptions to a cash ISA, and Help to Buy ISA reinstatement subscriptions
  • Not have exceeded the overall subscription limit which is £20,000 for 2019/20.
  • Either a Certified High Net Worth Individual or Company (Article 48 and 49 of the Act), or * Certified or Self-Certified Sophisticated Investor

Prior to April 6th 2016 there were broadly two categories of ISA – Cash ISAs and Stocks and Shares ISAs. Now there is a new category called the Innovative Finance ISA (IFISA) which allows individuals to hold Peer to Peer (P2P) loans free of tax on interest and capital gains.

Every UK adult is permitted to invest up to £20,000 tax-free in an ISA in 2019/20. It is possible to split this allowance across the four different types of ISAs. But you cannot open more than one new ISA in each class in each tax year. (i.e. only ONE cash ISA and ONE Stocks and Shares ISA and ONE Lifetime ISA and ONE Innovative Finance ISA can be opened in each tax year).

You can transfer from your Cash ISAs and Stocks and Shares ISAs into your Innovative Finance ISA.

Your funds will be covered by the Financial Services Compensation Scheme (FSCS) while the relevant FCA firm holds your money, processes funds, and services your. Once your funds are lent to the borrower, the FSCS protection ends and the investment security package takes effect.