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Peer2Peer Finance News | September 18, 2019

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UK Bond Network unveils IFISA with 1pc cashback sweetener

UK Bond Network unveils IFISA with 1pc cashback sweetener
Anna Brunetti

UK BOND Network joined the innovative finance ISA providers’ league on Tuesday, launching a tax-free wrapper that will offer interest rates of between seven per cent and 12 per cent per year on a minimum £5,000 investment.

The peer-to-peer bond auction platform will also offer a one per cent cashback bonus on any first investment carried out through a newly-opened ISA account by 31 May – consisting of either new corporate bond issues or bonds purchased from other investors on the platform.

Read more: Rebuilding Society readies for IFISA launch

“Tax efficiency is a key concern for many of our investors. Extending the benefits of ISAs not only to P2P loans, but also to P2P debt securities such as those that we provide, creates another valuable opportunity for income investors to stretch their returns even further,” said UK Bond Network’s chief executive Chris Maule.

The firm announced it had received ISA manager status from HMRC at the end of January, when it also confirmed that it had partnered with P2P technology provider Goji to provide the tax-free wrapper.

“It provides yet another attraction for existing P2P investors and a boon for potential new lenders – we look forward to opening up this new opportunity and offering tax-efficient investing,” said Maule at the time.

Read more: Proplend joins IFISA pipeline after getting HMRC stamp of approval

The platform, which received full authorisation from the Financial Conduct Authority last November, joins a slew of platforms that have rushed to launch IFISA products before the tax year deadline, with at least four lenders unveiling their IFISAs last week and one more in the process of finalising it.

Look out for the upcoming print edition of Peer-to-Peer Finance News for more insight into investor uptake of the IFISA.