Register your interest for tax-free investing
The Innovative Finance ISA, or IFISA, provides a way of investing tax-free through peer-to-peer lending. FundingKnight is hoping to be able to offer this option to our investors later in 2016.
Investing tax-free
Open to UK residents, ISAs (Individual Savings Accounts) are exempt from both income tax and capital gains tax. Each tax year up to £15,240 can be invested tax-free into one or more suitable accounts.
There are several types of ISA that you can invest in:
- Cash ISAs are essentially tax-free savings accounts, with instant access to your cash.
- Help to Buy ISAs, for first-time home buyers, are a type of cash ISA so you may not be able to hold both in the same tax year.
- Stocks and shares ISAs can be used to invest in funds, bonds and shares, and are typically managed by a broker or platform who will charge a fee for this service.
- IFISA’s are used to invest in peer-to-peer loans,
From April 2016, the IFISA enables investors to use some or all of their allowance to cover their peer-to-peer investments.
Moving funds into an IFISA
The annual allowance applies to new investments made in any given tax year: each year an additional amount up to the maximum permitted can be invested into ISAs. The money in new or old ISAs is not locked into place and can be transferred to another ISA provider without losing the tax benefits.
Alternatively, you can set up a new ISA with a new investment. If you are investing in different ISAs in different places, make sure the total does not exceed your allowance.
At the moment there is no mechanism for moving existing peer-to-peer investments into an ISA vehicle.
FCA authorisation
The IFISA can only be offered by peer-to-peer lending platforms which have been authorised by the FCA. FundingKnight’s application is currently underway with full authorisation expected later this year. We are working on the details in advance so that we can hit the ground running. If you are an eligible investor, we want you to take advantage of tax free investing as soon as possible.
To register your interest in the IFISA at FundingKnight, please enter your details below. We will let you know further information as it become available.
Fill out the form to register your interest for tax-free investing
