FUNDING Circle has opened its Innovative Finance ISA (IFISA) to transfers, meaning that all of the ‘big three’ peer-to-peer lenders now offer this capability.
The UK’s third-largest lender to small businesses said on Wednesday that investors can transfer any existing ISAs – such as cash, stocks and shares or other IFISAs – into their Funding Circle ISA, with immediate effect.
“Since last November more than £90m has been lent directly to businesses through the Funding Circle ISA, and we’re pleased to see so many of you taking advantage of the opportunity to earn attractive, stable returns tax-free,” the company said on a blog post on its website.
“From today, you are now also able to transfer any existing ISAs you hold over to your Funding Circle account, subject to any restrictions set by your current provider.”
Existing ISA transfers will not affect investors’ £20,000 annual tax-free allowance, unless they are transferring funds they have used to subscribe to an ISA this tax year, Funding Circle said.
Investors wishing to transfer funds from existing ISAs need to fill in details on Funding Circle’s transfer form and send it to the P2P platform via post. Then Funding Circle will get in touch with the ISA provider and arrange for the funds to be transferred.
The whole process can take around 20-40 working days depending on the type of ISA the investor wishes to transfer, Funding Circle said.
Fellow ‘big three’ platform RateSetter announced earlier on Wednesday that it has opened its IFISA to transfers.