Lending through your IFISA is exactly the same process as through your Standard Account. Funds in your Innovative Finance ISA will only start to generate interest upon drawdown of a loan by the borrower unless Instant Returns are enabled on the loan. Do not forget Ablrate’s Instant Returns are also a tax-free gain on funds lent through your IFISA.
PLEASE REMEMBER, REGARDLESS OF THE TAX BENEFITS, CAPITAL IS AT RISK
Whether investments are held within a IFISA or in a general account, they are not covered by the FSCS; the government backed deposit insurance scheme that protects bank deposits including Cash ISAs. The tax benefits available in an IFISA are subject to status
and your capital is at risk
. The tax benefits of an IFISA are also subject to change by the government.