WITH less than two months left to the end of the tax year, make sure you don’t forget to use your tax-free ISA allowance.
Savers can allocate all or some of this tax year’s £20,000 to an Innovative Finance ISA (IFISA), which allows investors to enjoy tax-free earnings on peer-to-peer investments.
If you have already used up your ISA allowance, it is possible to transfer an existing ISA (be it cash, stocks and shares or IFISA) into a new IFISA.
There are dozens of products on the market, but here we round up some of the most recent launches…
The Just ISA enables investors to fund the legal costs of individuals who are bringing cases against banks or companies, targeting annual returns of eight per cent.
The idea is to help those who cannot afford to commence proceedings against big companies.
The IFISA takes the form of a three- or five-year bond, with a minimum investment of £2,000.
Read more: IFISAs: Plenty to play for
Property Partner IFISA
Investors can access property development loans via Property Partner’s new IFISA, which offers annual returns of up to 10 per cent.
Property Partner offers bonds secured against UK residential property developments, sourced by its specialist loan origination and management partner, Proseed Capital.
Loans are offered over terms ranging between six and 18 months and the platform is currently offering two projects paying investors 9.9 per cent and 10 per cent respectively.
This is a new IFISA-eligible bond which finances mining projects. Developed by Rutter, who is also chief operating officer of Raptor Capital Streaming, upfront payments are made to development stage mining companies to purchase part of their future production. Raptor can also receive royalties, representing a percentage of the mineral production from a mine.
This is another IFISA-eligible bond which has been launched by Rutter. It provides funding for property renovations in Monaco, with a minimum investment of £2,000. The product offers eight per cent annual returns over a fixed three-year period.
Coming soon…the Orca IFISA
P2P analysis and investment firm Orca is readying to launch its own tax-free wrapper, which will enable investors to fund P2P loans from various platforms within a single IFISA.
It will offer interest of up to 6.5 per cent.