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 to shield your loan interest from tax with an allowance of up to £20,000 per annum (as at 2021). Ablrate’s Innovative Finance ISA also 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).


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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