Peer-to-peer lending platforms have made plays for Innovative Finance ISA (IFISA) money in the lead up to the end of the current tax year.
Investors have just days left until the end of the tax year on 5 April to use their £20,000 ISA allowance.
LandlordInvest has highlighted the deadline to investors.
The P2P property lending platform said funds deposited do not have to be invested before 5 April to keep this year’s ISA allowance but if lenders want to send cash via bank transfer they will need to complete the process by 5pm on Monday 5 April to ensure they don’t miss the deadline.
The platform said that any replaceable amounts must also be replaced by 5pm on Monday 5 April at the latest or it will be lost.
“Just a reminder that there’s not long left for you to use your ISA allowance of £20,000,” LandlordInvest said in a blog on its website.
“When you put your money into an ISA, you don’t pay any tax on interest earned.”
Folk2Folk said some investors could have built an ISA pot worth hundreds of thousands of pounds tax-free and suggested the tax wrapper was an alternative solution to cash ISAs that are paying returns below inflation.
“People who have managed to put aside their money diligently into ISAs since the system was introduced almost two decades ago could in many cases have amassed ISA funds worth tens if not hundreds of thousands of pounds, depending on the yields or growth rates they have managed to achieve,” Folk2Folk said in a blog on its website.
“By holding the loan in the IFISA wrapper, the interest earned is free of income tax.
“Perhaps now is the time to consider transferring your ISA to a better deal?”