Orca money explains the new innovative finance ISA with easy-to-use graphic

Orca money explains the new innovative finance ISA with this easy-to-use graphic.

P2P lending has evolved into a £2.7bn industry as of 2015, having been created in 2005 by lending platform Zopa.

With over 50 P2P platforms operating in the UK space and roughly 250,000 UK P2P investors, the UK Government have opted to introduce a tax-efficient wrapper encouraging further investment and stimulating growth in the market now that it’s moving mainstream.

Interest made on P2P investments will be shielded from tax, if stored in an IFISA, up to an annual allowance of £15,240 invested funds through P2P products. Investors can transfer in old cash from any adult ISA into any number of IFISAs and gain tax-efficiency, but the annual allowance cannot be oversubscribed within the financial year.

Orca Money helps UK investors access, research and compare UK peer-to-peer lending platforms and products, so they feel comfortable opening an IFISA with a given ISA Provider and storing P2P products (issued by platforms) within it. P2P investment rates range from 3% - 19% depending on the platform and product.

Ensure and compare peer-to-peer lending platforms and products HERE.