PROPERTY Crowd has joined the club of Innovative Finance ISA (IFISA) providers, unveiling a tax-free wrapper that will yield up to 10 per cent returns.
The launch, flagged by Peer to Peer Finance News earlier this month, will offer the platform’s investors a minimum £5,000 exposure to property-backed bonds, benefitting from an extra layer of security provided by segregated client funds and independent custodians.
The debt and equity crowdfunding platform is owned by Global Alternatives, a owner-operator of marketplaces for alternative investments that recently launched the first cross-border secondary exchange for real estate assets, named Prop-X, on which all securities originated by Property Crowd will be listed.
“Investors are crying out for better options in this enduring low-yield environment,” said Global Alternative’s chief executive Rohin Modasia.
“It’s been a slow start for the IFISA, but ISAs do remain something of a nation’s favourite.
“Thanks to the UK government’s foresight and our robust business model, we’re able to offer our crowd investors a real alternative to disappointing savings accounts in the most tax-efficient manner possible.”
Investors will be able to transfer any funds they have accumulated in other ISA accounts over previous tax years into the new IFISA, the firm said.
Although not directly authorised, Global Alternatives is able to offer the tax-free wrapper as it is an appointed representative of Gallium Fund Solutions, which has received ISA manager status by HMRC.