UK Bond Network (UKBN), the alternative finance provider in secured corporate bonds, has launched its Innovative Finance ISA (IFISA) following regulatory approval. UKBN became fully authorized by the FCA in November 2016 and in January 2017, was awarded ISA manager status by HMRC.
UK Bond Network is among the few peer-to-peer platforms to have been approved to date and has partnered with Goji, a specialist builder of P2P products, to develop and administer the UKBN ISA.
The online platform explains that investors can hold an IFISA alongside cash and stocks & shares ISAs, investing their £15,240 ISA allowance for the 2016/17 tax year between the three as they choose. For the 2017/18 tax year, the allowance will rise to £20,000.
Using UK Bond Network, investors may lend from £5,000 upwards to both private and listed businesses and shelter any returns from income and capital gains taxes, according to ISA rules. Coinciding with the launch of their IFISA, UK Bond Network has announced an available incentive for early adopters. The platform will give a 1% cashback bonus to individuals opening up a UKBN ISA before June 1st.
“Tax efficiency is a key concern for many of our investors. Extending the benefits of ISAs not only to peer-to-peer loans, but also to peer-to-peer debt securities such as those that we provide, creates another valuable opportunity for income investors to stretch their returns even further,” said Chris Maule, CEO and founder of UK Bond Network.