The peer-to-peer lender says its IFISA targets up to 10 per cent returns.
P2P business lending platform ArchOver, has launched its Innovative Finance ISA (IFISA), according to a statement by the firm.
ArchOver’s IFISA service offers investors up to 10 per cent p.a. returns, the firm says. The UK government introduced the IFISA in April 2016, allowing investors to earn interest on peer-to-peer investments without having to pay tax on their earnings. However, AltFi's Special Report on the subject pointed out awareness seems to be low among investors.
According to other recent research by ArchOver, over half (54 per cent) of UK investors would put their cash into an IFISA if they had the money available, with nearly two thirds (63 per cent) recognising that it would offer a higher return on their savings.
CEO Angus Dent says there is a strong market out there for the IFISA. “We’re excited to get stuck in. Potential investors do need to be aware that the IFISA doesn’t work like a cash ISA – investment capital is always at risk – so it is essential that you work with a trusted and established partner,” he said.
The ArchOver IFISA will be available to both existing and new lenders from 24 May 2018. Users will be able to invest their ISA allowance in all of the projects on the ArchOver platform, earning tax-free interest with a minimum investment of £1,000.
Investors can choose from a range of security types including investment models that provide protection measures like credit insurance, dispute resolution, controlled accounts and all-assets charges with Companies House.