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Growing Together

IFISA Season is Here

22nd March 2024

What is an IFISA, exactly?

IFISA stands for Innovative Finance Individual Savings Account. ISAs, in general, are tax-free savings vehicles established by the UK government to promote saving and investing. With an IFISA, you can invest in "innovative finance" while enjoying tax-free benefits. It's crucial to note the distinction from a Cash ISA, which is a savings account held in a bank. While IFISAs provide higher rates of return, they also entail higher risk.

What advantages does it offer?

The IFISA enables you to generate tax-free earnings while contributing to the growth of British businesses. It offers a chance to participate in innovative ventures and emerging markets, potentially yielding substantial returns on your investments. Introduced in 2016, Innovative Finance ISAs (IFISAs) have quickly gained popularity. In short, an IFISA presents an exciting opportunity for engaged investors seeking to back entrepreneurial businesses and explore dynamic new markets.

New IFISA Rules 2024

The tax-free investment wrapper has been expanded to encompass a wider range of products. Investors have also welcomed a streamlining of the IFISA investment process, facilitating the diversification of their tax-free portfolios. 

Investors now have the opportunity to open multiple IFISAs per year. Until now, investors were restricted to opening only one new IFISA account per tax year. However, starting in April 2024, this limitation will be lifted, empowering IFISA investors to select multiple peer-to-peer lending platforms and other IFISA providers to support. They can choose to allocate their entire £20,000 annual ISA allowance to one provider or distribute it among several IFISA accounts. 

The scope of IFISAs has expanded beyond peer-to-peer lending. The chancellor has broadened the IFISA's scope to include long-term asset funds and open-ended property funds within the tax wrapper. This expansion is expected to increase the number of IFISA providers in the market as asset managers and other fund managers are seeking authorisation as IFISA managers to attract tax-efficient investors. 

Additionally, the government has facilitated ISA provider transfers by allowing partial transfers of ISA funds regardless of when the money was contributed. This means IFISA holders can transfer any previously invested or earned funds from previous tax years to another IFISA provider without affecting their annual £20,000 limit. This move is aimed at fostering competitiveness in the ISA market as providers compete for client funds.

So, why should you choose Crowd2Fund?

Crowd2Fund was one of the first platforms to offer the Innovative Finance ISA in the UK. We were awarded  ‘Most Innovative P2P Platform’ for three consecutive years at the MoneyNet Awards. With us, you have complete control over your money. The adaptable IFISA allows you to back entrepreneurs of your choice while potentially earning 6 to 18% in tax-free returns before fees and bad debt. Some Crowd2Fund businesses even offer exciting tangible rewards to their investors, such as unique products or services in addition to high returns.


Remember, the tax year ends on the 5th of April, so make sure you get your ISAs moved before then to ensure you maximise your use of your allowance.

To get started: Download our app and register for free, or email us at  

Tax treatment of any of the investment offers will depend on the individual circumstances of each investor and may be subject to change in the future.




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Risk warning

Past performance and forecasts are not reliable indicators of future results. Your capital invested is not covered for compensation in the event of a loss by the FSCS. Tax treatment will depend on the individual circumstances and may be subject to change. Please see our Risk section before making an investment decision.