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 £15,240. This is set to go up to £20,000 for the next tax year.

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.