What is the Innovative Finance ISA (IFISA)?

The IFISA is a tax-free wrapper that allows UK investors to lend money through Financial Conduct Authority-authorised peer-to-peer lending platforms. They can receive interest and capital gains tax free, up to the current annual ISA limit of £20,000.

The product was first announced by then-Chancellor George Osborne in 2015. Consumers can invest in a cash ISA, a stocks and shares ISA or an IFISA, or a combination of the three.

IFISA providerType of loansMinimum investmentTarget rate of return
AblrateBusiness£10010-15 per cent
AbundanceGreen energyDepends on project fundedDepends on projects backed (2 per cent on cash)
ArchOverBusiness£1,000Up to 10 per cent
Assetz CapitalBusiness, property £14.1-6.25 per cent on auto-invest accounts, variable with manual lending
AzuriteMonaco property renovations £2,0008 per cent
Barbican GroupThree-year bond funding specialist care homes £2,000Up to 7 per cent
CapitalRise Prime property£1,000Up to 14 per cent
Crowd2Fund Business£1008.7 per cent
CrowdforAngelsCrowd bonds£100Up to 12 per cent
CrowdProperty Property £500 Up to 8 per cent
Crowdstacker Secured business Depends on loans funded Up to 6.8 per cent
Downing Crowd bonds £100 5.79 per cent
EasyMoney Property-backed £100 Up to 7.28 per cent
Folk2Folk Local and rural businesses £20,000 6.5 per cent
Funding Circle Business£1,000 5-7 per cent
Fund OurselvesShort-term loans £100 Up to 15 per cent
Goji Diversified lending bond £1,000 5 per cent
Growth Street Business £105.8 per cent
HNW Lending Secured by valuable assets £5,000 Up to 15 per cent
Just ISA Litigation funding £2,000 8 per cent
Kuflink Property £100 Up to 7.2 per cent
Landbay Buy-to-let £5,000 3.75 per cent
LandlordInvest Buy-to-let and bridging Depends on loans funded Up to 12 per cent
Lendahand Ethex – Energise Africa Solar projects in Sub-Saharan Africa £50 Up to 6 per cent
LendingCrowd Business £1,000 6 per cent
Lending Works Consumer £10 3.8 per cent for three years and 4.5 per cent for five years
LoanpadProperty £10 4 to 5 per cent
Money&Co Business £100 7 per cent
Octopus Choice Property-backed £10 4 per cent
Property Crowd Property £5,000 Up to 10 per cent
Property Partner Property development loans Depends on loans funded Up to 10 per cent
ProplendProperty £1,000 Up to 12 per cent
RateSetter Consumer, business, property £10 Up to 5.1 per cent but depends on market rates
Raptor Mining projects £2,000 8 per cent
Rebuildingsociety Business £109.7 per cent
Relendex Property £500 for self-select, £2,500 for secured portfolioUp to 10 per cent
Shojin Property PartnersProperty Typically £5,000 Depends on product
The House Crowd Property £1,000 7 per cent
Zopa Consumer £1,000 4 per cent or 4.6 per cent