It what was his penultimate budget as chancellor, George Osborne announced the IFISA back in March 2015, although it officially launched in April 2016, allowing investors to hold P2P loans as part of the ISA tax wrapper. So far only a few platforms have been granted ISA status with the rush now on for the rest to receive the thumbs up before the next ISA deadline on 5 April.
New and existing Landbay investors are able to invest up to their full ISA allowance of £15,240 in this tax year, rising to £20,000 at the start of the new tax year in April. However, the its minimum investment is £5,000, at a rate of 3.75 per cent.
Landbay opened for business in 2014 and has lent over £43m to professional residential landlords in the UK. The firm says no borrower has so far faced “repayment difficulties”.
John Goodall, chief executive officer of Landbay said is bullish that his firm can grow significantly in the coming years to reach more than £1bn of lending by 2020. He says the advent of the IFISA will be a boon for investors and savers alike, as well as the p2p industry’s growth rate.
“At a time when investors are facing record low interest rates, and the prospect of rising inflation, our IFISA gives people the opportunity to earn a 3.75 per cent return in a tax efficient manner, by lending to one of the UK’s best performing asset classes: buy to let," he said.