Innovative Finance ISA Rules (IFISA)

The UK will shortly see a new law introduced for an exciting Innovative Finance ISA (IFISA), which will allow savers to enjoy tax-free interest by investing in P2P loans up to a certain amount.

From 6 April 2016, lenders will be able to set up an IFISA with platforms such as Crowd2Fund and allocate up to £15,240 (on the current threshold) and earn tax-free interest on the loans lent to growing businesses.

Crowd2Fund is one of few platforms that will be looking to act as a your ISA Manager in respect of P2P loans under FCA regulation.

P2P platforms must be regulated if they are facilitating lending and borrowing between two individuals or between individuals and businesses. Without this approval a platform will not be able to operate as an official ISA Manager.

Strict rules apply to any lending or P2P platform. In addition to the current reporting obligations as a fully FCA regulated P2P platform, Crowd2Fund will also have further obligations and reporting to make as an ISA Manager.

Further details on the role of ISA Manager can be found here:

To help understand the Innovative Finance ISA rules in more detail, here is a list of key points to help you:

  1.  Only loans that repay both the principle and interest qualify for the ISA, interest only bonds do not qualify.

  2.  The repayment must be made directly to the manager of the ISA, unless the platform is an ISA manager

  3.  Investors and savers need to invest in a genuine investment opportunity or business directly, not schemes with arms length agreements just looking to take advantage of this new policy.

  4.  Investors and savers must invest into the ISA for the full tax year.

As April 6th 2016 creeps ever so nearer Crowd2Fund are fully organised for the arrival of the new Innovative Finance ISA.

We will be sharing further information up until and beyond the launch of the new law so that as an investor, you will have a clear understanding of the risks and benefits in lending to growing businesses and how you can use the ISA for potential maximum return on investments pledged through the Crowd2Fund platform.

To keep up to date on all the Innovative Finance developments, visit

Risk warning

Investments in the IF ISA are not protected by the FSCS and you must speak to your tax advisor before making an investment in this way.

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Risk warning

Investments like these involve risks including loss of capital. Please see our risk section before making an investment decision