What is the Innovative Finance ISA (IFISA)?
The IFISA is a tax-free wrapper that allows UK investors to lend money through Financial Conduct Authority-authorised peer-to-peer lending platforms. They can receive interest and capital gains tax free, up to the current annual ISA limit of £20,000.
The product was first announced by then-Chancellor George Osborne in 2015. Consumers can invest in a cash ISA, a stocks and shares ISA or an IFISA, or a combination of the three.
|IFISAs currently available||Type of loans||Minimum investment||Target rate of return|
|Proplend||Property finance||£1,000||Up to 12 per cent|
|FundingSecure||Property and other asset-backed loans||£25||Up to 16 per cent|
|HNW Lending||Valuable assets||£5,000||Up to 15 per cent|
|CapitalRise||Property finance||£1,000||Up to 14 per cent|
|CrowdforAngels||Crowd bonds||£100||Up to 12 per cent|
|LandlordInvest||Property finance||Depends on loans funded||Up to 12 per cent|
|UK Bond Network||Company bonds||£5,000||Up to 12 per cent|
|PropertyCrowd||Property finance||£5,000||Up to 10 per cent|
|Crowd2Fund||Business loans||£100||8.7 per cent|
|Money&Co||Business loans||£100||7 per cent|
|Crowdstacker||Asset-backed business loans||Depends on loans funded||Up to 6.8 per cent|
|Basset & Gold||Asset-backed loans||£1,000||6.12 per cent for one year and 6.7 per cent and 20.1 per cent for three years|
|Lending Crowd||Business loans||£1,000||6 per cent|
|Downing||Crowd bonds||£100||5.79 per cent|
|Lending Works||Personal loans||£10||3.8 per cent for three years and 4.5 per cent for five years|
|Landbay||Property finance||£5,000||3.75 per cent|
|Abundance||Energy-related projects||Depends on project funded||Depends on projects backed (2 per cent on cash)|
|Lendahand Ethex – Energise Africa IFISA||Solar projects in Sub-Saharan Africa||£50||4-6 per cent|