UK-based peer-to-peer lending platform Lending Works announced on Friday it has reopened the window for ISA contributions. The platform claimed it is the first P2PFA member to launch an Innovative Finance ISA (IFISA) last week and filled its first ISA tranche of £2.5 million within 24 hours. While sharing details about the ISA, Nick Harding, founding CEO of Lending Works, stated:
“We had an idea from the enthusiasm of our customers that the launch of our ISA would be met with great fanfare, but to have seen over £2.5 million of ISA capital fly in within 24 hours exceeded even our lofty expectations. We are conscious that an excess of ISA capital could result in increased matching times, which is why we’ve decided to accept ISA contributions in fixed tranches. However, owing to a rising volume of loan originations, we’re delighted to be giving lenders another opportunity to take advantage of tax-free P2P lending returns so soon after the launch.”
Lending Works explained consumers will be able to subscribe up to £15,240 each financial year, although they have the option of splitting this across all three ISA types – cash, stocks & shares and IFISA. This allowance is set to increase to £20,000 in 2017/18. The lender then noted that in addition, there is no cap imposed on the transfer of funds accumulated over previous tax years within existing ISAs into an IFISA, meaning the benefits are likely to be substantial. Harding went on to add:
“We are conscious that savvy investors will be looking to make the most of this year’s ISA season, which is why we expect to regularly reopen the tranche for inward ISA investment into our platform between now and the end of the year. We can thus assure consumers that there will be ample opportunity to capitalise on the benefits of a Lending Works ISA, and the fact that we are also in a position to increase the cap to £5 million on this occasion further underscores this. However, based on the influx we experienced after the launch of the new wrapper, we still expect to see this tranche filled within just a few days, so for those looking to contribute to their ISA during this window, we’d suggest you move quickly!”
