Innovative Finance ISA or IFISA is launching on 6th April 2016, Are you ready?
5th February 2016
Good news for Crowd2Fund Investors, from 6th April 2016, investors can set up an Innovative Finance Individual Saving Account (IF ISA) for their Crowd2Fund investments. Under this new scheme, earnings from crowdfunding investments will be exempt from tax, up to the value of £15,240 for this current financial year.
And more good news, anyone who already has a cash or stocks and shares ISA will be able to transfer all or part of their balance over to an Innovative Finance ISA (IF ISA) and continue to earn interest tax-free.
What that means in practice is that if you have, say, £100,000 in a cash ISA, you can transfer all or a portion of that to an Innovative Finance ISA – and remember, that is in addition to being able to invest a further £15,240 from April this year. And more, all cash held in an Innovative Finance ISA will be allowed to transfer or make withdrawal from the account within 30 days by trading the investment on our Exchange, withdrawal is not guaranteed though, as another investor will need to purchase the investment from you. Investors will not only have more option in choosing their investment but also earn interest as tax free investment. Please remember though 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 and you should speak to your tax advisor before making an investment.
The annual tax-free limit of £15,240 for the new Innovative Finance ISA (IFISA).
Under the new regulation, which we expect to be approved soon, each individual can to invest up to £15,240 in an ISA in the 2016-17 tax year. You can split this up however you like – so, for example, you could invest the whole £15,240 into an Innovative Finance ISA, or you could put £10,000 in a cash ISA and £5,240 into an Innovative Finance ISA, or any other combination you can think of (including stocks and shares ISAs).
Innovative Finance ISA can only be invested within with one provider at a time each tax year.
The concept is if you open an Innovative Finance ISA with Crowd2Fund in the first year, you can only open another Innovative Finance ISA in year two with a different provider. It is still possible to transfer between Innovative Finance ISA providers in the same tax year, but you couldn’t invest into two Innovative Finance ISAs at the same time. The same rules apply to other types of ISA.
These products are opposed to savings products, so you don’t benefit for FSCS cover. Capital is at risk, but with that risk comes substantially better returns.
For more updates about the Innovative Finance ISA look here: https://www.crowd2fund.com/marketing/innovative-finance-isa-or-ifisa
Past performance and forecasts are not reliable indicators of future results.
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. If you are unsure about any aspect of the information provided by the company, you should seek advice from an independent financial adviser.
Do not invest more than you can afford to lose. Investing in start-ups and early stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Investing in start-ups may expose the individual concerned to a significant risk of losing all of the money or other assets invested.
Peer to business lending through Crowd2Fund is not the same as holding a bank or building society savings account. When making a peer to business loan, your capital lent to a borrower is not covered for compensation in the event of a loss by the Financial Services Compensation Scheme.
It may prove impossible to recover all or part of the loan by calling in the business assets held as security on that loan. Reward and Donation funding types are not regulated by the Financial Conduct Authority Crowd2Fund Limited is authorised and regulated by the Financial Conduct Authority (FRN 623683).
Crowd2Fund Limited is registered in England and Wales. Registered No. 08472687 Registered Address: 1 Quality Court, Chancery Lane, London, England, WC2A 1HR.
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.