FUNDING Circle has opened its Innovative Finance ISA (IFISA) to new investors.
The peer-to-peer business lending platform opened its IFISA to existing users last November but has now said that the tax wrapper, offering projected returns of 7.2 per cent, is open to the wider public.
James Meekings (pictured between co-founders Samir Desai and Andrew Mullinger), UK managing director and co-founder of Funding Circle, said £80m has already been lent through its IFISA by existing investors.
“We’re proud of what more than 79,000 investors have achieved over the last eight years by lending through Funding Circle,” Meekings said on Wednesday.
“On average investors have earned 6.4 per cent per year after fees and bad debt, creating tens of thousands of jobs by supporting businesses all over the UK. We’re excited to now offer tax-free access to this stable and attractive investment option.”
The IFISA account is a flexi-ISA, meaning you can withdraw any available funds without affecting your annual £20,000 ISA subscription limit, providing you transfer them back in by the end of the tax year.
As with other IFISAs, investors will not be able to transfer existing P2P loans.
There will be a minimum investment of £1,000.
The IFISA was given a staggered rollout for existing investors at the end of last year to manage demand.
It means the ‘big three’ P2P platforms – Funding Circle, Zopa and RateSetter – have now all opened their IFISAs to new investors.
Read more: HMRC’s IFISA numbers come under scrutiny
Read more: Budget, personal allowance ‘hampered’ IFISAs