Frequently asked questions

What are the tax consequences if a loan is not repaid and it is held within the IFISA?

Losses within the IFISA cannot be offset against capital profits - this is due to the fact that it is already within a tax-wrapper.  
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.

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What are your charges for the ablrate IFISA?

There are no fees associated with setting up your IFISA with Ablrate. We are charged 0.35%/12, each month, of the amount of funds that are on account by our service provider Goji and an annual fee of £4,000. We do not pass on any of these charges to yourself, and we have no plans to do so in the future. If you choose to move your IFISA to another provider then we charge £100 to do so.
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...

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Lending Options via SIPP/ISA/SASS

Ablrate is able able to offer SIPP accounts through Morgan Lloyd. We are one of only 9 approved peer to peer lending platforms. Morgan Lloyd is also able to accommodate SASS schemes and we welcome those who would like to invest via this kind of pension schemes. Please follow the Morgan Lloyd link for more details, they will walk you through the process with you and get you set up as soon as possible.

Your SIPP or SSAS enjoys some really attractive tax benefits. As you would expect, HMRC regulates these types of pensions to ensure that the tax advantages aren’t abused.

When considering any type of loan (either directly or indirectly) it is therefore important that you are aware of two key restrictions that form part of the HMRC regulations:

Firstly it is not permissible for your SIPP or SSAS to invest in any loan where you are...

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At what point can I transfer my ISA from another provider to you?

You can transfer your ISA at any time, you do not have to wait until the end of the tax year.  You are able to transfer in cash from any eligible ISA that you hold from previous years allowances. We only accept transfers in cash i.e we do not hold stocks and shares, or other instruments. Money must be transferred across directly from your existing ISA account to the Ablrate IFISA. Please note you can not move this through a current or savings account as the funds will lose their ISA status. Our platform has a link that allows you to complete this process online and print off the forms required to complete your transfer.
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...

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What is the difference between a cash ISA, a stock and shares ISA and an Innovative Finance ISA?

Interest paid on a cash ISA is tax free and is suitable for short term savings – less than 5 years and interest is received on the savings at a fixed or variable rate. A stocks and shares ISA is a tax-efficient way to invest in shares and securities for five years or more, and when you want to participate in the potential growth in the stock markets. The Innovative Finance ISA allows lenders using online lending platforms, like Ablrate, to receive tax-free interest on their lending activities.
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...

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Can I fund my IFISA through a one off lump sum?

An individual can fund an IFISA however they wish to before the 5th April in that tax year to make use of that tax year’s allowance. They can invest a lump sum or spread the funding over the year, however they see fit.
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.

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What is a peer to peer lending ISA?

A ‘peer to peer lending ISA’ is just another expression used to describe the Innovative Finance ISA. It is described by some as a peer to peer lending ISA. This is simply because it can be used to lend through peer to peer platforms on a tax free basis. The term ‘peer to peer lending ISA’ is also a little misleading for lending sites such as Ablrate. Strictly speaking we are a peer to business platform where individual and corporate lenders come together to finance asset backed transactions. Peer to peer lending would be where an individual lender lends to other individual like on Zopa for example. We classify ourselves as an ‘online lending exchange’ simply because your lending, and the loans that result, can be exchanged with other members of our community, much like a stock or bond market. A peer to peer lending ISA is a great way...

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What is an IFISA

An ISA is an Individual Savings Account and is not a product in its own right. An ISA is a ‘wrapper’ in which you can shelter savings and investments from tax. There are multiple types of ISA available; a cash ISA, a stocks and shares ISA, an Innovative Finance ISA, a Lifetime ISA and a Help To Buy ISA. The Junior ISA is available to those under 18. You can put money into an ISA, up to a set limit each tax year. This limit is known as your ‘ISA allowance’. Any returns or gains made from money placed in an ISA are not subject to income and capital gains tax. You don’t even need to declare ISAs on your tax return. The IFISA allows individuals to use their annual ISA allowance to lend funds through investments such as loan based crowdfunding or Peer-to-Peer (P2P) lending and crowdfunded debt securities....

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Lending through your Ablrate IFISA

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.

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