ArchOver, the UK P2P business lending platform, announced this week the launch of its Innovative Finance ISA (IFISA)to both new and existing lender. ArchOver reported that the IFISA allows individuals to earn tax-free returns by investing over P2P lending platforms using their annual ISA allowance of £20,000. ArchOver stated:
“The IFISA works very much like any other ISA. It allows you to deploy some or all of your annual tax-free ISA allowance across certain P2P lending platforms, including ArchOver. Your annual ISA allowance is £20,000, which can be invested in any type of ISA, and interest earned is tax-free. As with all other investing, your capital is at risk.”
To open an IFISA, users simply log in and follow the instructions on-screen. They will need their National Insurance (NI) number in order to complete your registration. To invest using their IFISA, users will also need to deposit funds in their ‘ISA Wallet’ before pledging on the platform. They can do this through the ‘Wallets’ tab on their Investment Dashboard. ArchOver added:
“Please remember, you can only have one IFISA with one provider in a tax year. You can change providers during the tax year by transferring your IFISA to a different FCA-authorised platform. You will soon be able to transfer in existing ISA balances.”