The UK Government introduced the Innovative Finance ISA on 6th April 2016. The “IFISA” allows individuals to use some (or all) of their annual ISA investment allowance to lend funds through the growing Peer-to-Peer lending market, whilst receiving tax-free interest and capital gains.
Ablrate began offering their IFISA in August 2017. In the first few hours over 70 IFISAs were opened with over £250,000 deposited. The Ablrate IFISA has been designed specifically for Ablrate Lenders. It is a flexible IFISA which means you can withdraw money from your IFISA and put it back in in the same tax year without affecting your annual allowance.
Our borrowers are primarily UK based and all loans are asset backed. This means that your loan is secured by collateral (assets) provided by the borrower. We post full details of the borrowing company and the loan in a borrowing proposal. It is then up to you to choose whether you would like to invest or not.
We also have more flexible loan accounts, where you have quick access while there are lenders investing in and selling those loans. This gives you the flexibility not to tie up your money, but still get a great return. We call these loan ‘Portfolio Loans’. To find out more on the different portfolio loans we offer, visit our portfolio loans page.
10-15%
Businesses
£100
The Ablrate Innovative Finance ISA is flexible, you can withdraw funds and deposit back in the same year without affecting your allowance. We accept ‘Transfers In’ from your other cash ISA, Stocks and Shares ISA or even other Innovative Finance ISAs. Ablrate’s IFISA also offers the option to buy new loans and sell existing loans in our community with our Loan Exchange.
Opening an account takes less than 5 minutes. All you need is to open an account and have your National Insurance number handy.
Register for a Standard Account. We will use the information you provide to get you verified (which usually takes a couple of minutes).
You can trade through this account without the tax benefits (if you have used up your ISA allowance elsewhere for example), or move on to Step 2
Once you are logged into your Standard Account you will see a button that says ‘Open an IFISA’.
Clicking that button will take you through the process (you will need your National Insurance Number). If you are eligible you will be set up in seconds and will be ready to fund your account
Your Innovative ISA is all set up. You can Transfer-in previous year ISA funds, deposit straight into that account or transfer funds from your Standard Account to your Innovative ISA account.
The only thing to do now is start lending! If you need any help at all with setting up your Ablrate Innovative ISA Account, please get in touch
Lending through your IFISA is exactly the same process as lending through your Standard Account. Funds in your Innovative Finance ISA will only start to generate interest upon draw down of a loan by the borrower (unless Instant Returns are enabled on the loan). You need to have a standard account before being able to open an Ablrate IFISA.
Our online system also checks automatically with our administrators to make sure you don’t over fund you IFISA.
Ablrate’s Innovative Finance ISA has no charges or fees while you have your IFISA with us ( we pass on the charges if you want to transfer your IFISA to someone else)
Ablrate Instant Returns are a tax free gain on funds lent through your IFISA.
Our IFISA is flexible. You are free to withdraw funds and also deposit back in the same year without affecting your allowance.
The Innovative Finance ISA (IFISA) is tax free but this does depend on your individual circumstances. If you are uncertain of your tax status, or whether you qualify for tax free status on the IFISA, please contact an authorised advisor. The IFISA is not covered by the Financial Services Compensation Scheme (FSCS). There are also risks pertinent to each loan that you should read in each borrowing proposal and you should make yourself aware of the general risks of peer to peer lending, you can view those risks here
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