CROWD2FUND has reported a boom in Innovative Finance ISA (IFISA) funds in the second year of the tax wrapper.
The peer-to-peer business lending platform said on Thursday that the value of IFISA funds held on the platform had increased 83 per cent annually for the 2017/18 tax year, while the number of accounts was up 70 per cent.
The platform said 113 IFISA-qualifying businesses had been funded through the platform during the 2018 tax year, an annual increase of 145 per cent.
Read more: The latest IFISAs on the market
“Whilst 2016/17 was a relatively slow start for the entire IFISA market, it is encouraging to see an uplift in funds held being close to 100 per cent,” Crowd2Fund said.
“This indicates that there is still a latent demand for the IFISA, which will likely increase in time due to the low returns offered by cash ISAs and a volatile stock market, making stocks and shares ISAs less appealing.”
Crowd2Fund reported a record-breaking first quarter last year when it experienced 4,700 per cent year-on-year growth in the number of deals financed through the platform.
The lender, which was one of the first platforms to offer the IFISA, said that 95 per cent of its investments are now made through the tax free wrapper.
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