Newly authorised peer-to-peer lender publishes short update on Innovative Finance ISA plans.
At long last authorised by the FCA yesterday, RateSetter is now free to launch its IFISA offering, subject to approval from HMRC. This will free its sizable community of individual investors from the burden of income tax for up to £20,000 a year.
RateSetter today published a short update on its website suggesting that it intends to launch its IFISA “in good time” to allow for investments to be made before the end of the current tax year. Investors can stay up to date with the latest developments on this front by signing up to the platform’s IFISA mailing list.
Yesterday, RateSetter became the third member of the UK’s “big three” peer-to-peer lenders to receive full authorisation from the FCA, approximately two years after filing its application.
The IFISA, first ushered into existence in 2016, has gotten off to a fairly muted start. For a good year, the tax break was only being offered by relatively early-stage peer-to-peer lenders and investment-based crowdfunders. The authorisation of Zopa and Funding Circle in May failed to inject life into the market, as both platforms have for now held off from full-blown IFISA launches. Zopa’s IFISA is live, but thus far has only been available to existing investors.
Zopa has been closed to new investors for the better part of this year, but plans to re-open to new investors in early 2018. This will likely drive demand for its IFISA. With RateSetter also eyeing a launch within the next 6 months, perhaps 2018 will be the year that the IFISA truly takes off.