Peer-to-Peer lending has become pretty popular over the past few years. Offering great returns, it has attracted a lot of investors when falling interest rates made the banks unattractive. However, real returns can be impacted by the taxes you pay, especially if you are in the higher tax bracket.
2017 brings great news for Peer-to-Peer investors. You can now save up to £20,000 tax free for the 2017/2018 tax year, if you invest into Peer-to-Peer lending via an Innovative Finance ISA, or IFISA. Even better, you can also transfer the money you have saved into ISAs from previous tax years, and start enjoying tax free P2P returns.
Lending Works has put together the infographic below to help you find out a bit more about Innovative Finance ISAs. In just two months, the platform has received over £8.8 million into its IFISAs! The largest transfers were around £150,000, showing people are already taking advantage of the option to invest money from previous tax years into Peer-to-Peer.
It is quick and easy to open an IFISA with Lending Works, and shield your returns from the taxman.
There is no limit to how much you can transfer from previous year. And you have 24/7 access to the platform and customer service.