We have a new loan offering available on site, with, as promised, more in the pipeline.
The current offer is detailed below:
A Process Guide To Innovative Finance ISA Investment
All loans on our site can be held tax-free, via an Innovative Finance ISA (IFISA). The current offering would yield almost exactly £1,400 per annum tax-free, net of our 1 per cent charge, for a £20,000 maximum IFISA investment.
So here’s our guide to the process of getting hold of that tax break:
The ISA allowance for 2018/19 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.