|
Post by multiaccountmanager on Dec 6, 2019 11:29:41 GMT
Some little while ago BC suggested an IFISA was to be launched at about this time.
The authorities might be busy at the moment but does anyone have any further information on timing?
|
|
|
Post by ron on Dec 6, 2019 17:47:01 GMT
I asked them a month or so ago, and they answered: No news... BC is a great platform, but communication with investors is not among their strengths. Offering an IFISA will be massively helpful, and I would personally significantly increase my exposure to BC.
|
|
aj
Member of DD Central
Posts: 345
Likes: 452
|
Post by aj on Dec 17, 2019 10:43:19 GMT
I take it from yesterdays cryptic BC email, the ISA is intended for a spring release.
The BC system as it stands will be an awkward ISA proposition; It will take a long while for repayments to hit the £5K minimum size. I am also foreseeing demand outstripping supply every new tax year. There are a few ways BC could deal with these issues, will be interesting to see what they go for.
|
|
IFISAcava
Member of DD Central
Posts: 3,664
Likes: 2,988
|
Post by IFISAcava on Dec 17, 2019 13:27:58 GMT
I take it from yesterdays cryptic BC email, the ISA is intended for a spring release. The BC system as it stands will be an awkward ISA proposition; It will take a long while for repayments to hit the £5K minimum size. I am also foreseeing demand outstripping supply every new tax year. There are a few ways BC could deal with these issues, will be interesting to see what they go for. If they want to attract significant ISA investors, two simple options are: a) reduce minimum to £500 or £1000 per loan like Proplend/Relendex/Crowd Property b) implement an autolend with lower/variable minimums (like Crowd Property) or the same minimums (like Proplend).
|
|
Greenwood2
Member of DD Central
Posts: 4,247
Likes: 2,692
|
Post by Greenwood2 on Dec 18, 2019 8:22:21 GMT
I take it from yesterdays cryptic BC email, the ISA is intended for a spring release. The BC system as it stands will be an awkward ISA proposition; It will take a long while for repayments to hit the £5K minimum size. I am also foreseeing demand outstripping supply every new tax year. There are a few ways BC could deal with these issues, will be interesting to see what they go for. If they want to attract significant ISA investors, two simple options are: a) reduce minimum to £500 or £1000 per loan like Proplend/Relendex/Crowd Property b) implement an autolend with lower/variable minimums (like Crowd Property) or the same minimums (like Proplend). If it's a flexible ISA you could take out the interest each month, and put it all back in at tax year end or when it reaches £5000.
|
|
IFISAcava
Member of DD Central
Posts: 3,664
Likes: 2,988
|
Post by IFISAcava on Dec 18, 2019 8:59:54 GMT
If they want to attract significant ISA investors, two simple options are: a) reduce minimum to £500 or £1000 per loan like Proplend/Relendex/Crowd Property b) implement an autolend with lower/variable minimums (like Crowd Property) or the same minimums (like Proplend). If it's a flexible ISA you could take out the interest each month, and put it all back in at tax year end or when it reaches £5000. You could, but then you are taxed on anything you earn outside of the ISA, the avoidance of which is the whole point of the ISA (and is a big deal for higher/additonal rate tax payers)! Cash drag is a real pain for the big minimum investment sites if you are accumulating, unless you have very large sums (6 figures) invested, which wouldn't make sense for an IFISA as exposes you to too much platform risk given the likely ISA totals most people will have.
|
|
Greenwood2
Member of DD Central
Posts: 4,247
Likes: 2,692
|
Post by Greenwood2 on Dec 18, 2019 9:34:50 GMT
If it's a flexible ISA you could take out the interest each month, and put it all back in at tax year end or when it reaches £5000. You could, but then you are taxed on anything you earn outside of the ISA, the avoidance of which is the whole point of the ISA (and is a big deal for higher/additonal rate tax payers)!Cash drag is a real pain for the big minimum investment sites if you are accumulating, unless you have very large sums (6 figures) invested, which wouldn't make sense for an IFISA as exposes you to too much platform risk given the likely ISA totals most people will have. Yes I really feel for the really high earners! You could put it in premium bonds or a cash ISA in the meantime.
|
|
IFISAcava
Member of DD Central
Posts: 3,664
Likes: 2,988
|
BC IFISA
Dec 18, 2019 9:38:11 GMT
via mobile
Post by IFISAcava on Dec 18, 2019 9:38:11 GMT
You could, but then you are taxed on anything you earn outside of the ISA, the avoidance of which is the whole point of the ISA (and is a big deal for higher/additonal rate tax payers)!Cash drag is a real pain for the big minimum investment sites if you are accumulating, unless you have very large sums (6 figures) invested, which wouldn't make sense for an IFISA as exposes you to too much platform risk given the likely ISA totals most people will have. Yes I really feel for the really high earners! You could put it in premium bonds or a cash ISA in the meantime. PB yes, agreed, cash ISA unlikely as those investing in this product will have used up all ISA allowance most likely. ISA transfers is the other option but may be a fee to discourage frequent small transfers.
|
|
IFISAcava
Member of DD Central
Posts: 3,664
Likes: 2,988
|
Post by IFISAcava on Dec 18, 2019 9:41:06 GMT
You could, but then you are taxed on anything you earn outside of the ISA, the avoidance of which is the whole point of the ISA (and is a big deal for higher/additonal rate tax payers)!Cash drag is a real pain for the big minimum investment sites if you are accumulating, unless you have very large sums (6 figures) invested, which wouldn't make sense for an IFISA as exposes you to too much platform risk given the likely ISA totals most people will have. Yes I really feel for the really high earners! You could put it in premium bonds or a cash ISA in the meantime. I suspect most people who would invest in products with a £5000 per investment minimum are or were high earners.
|
|
Greenwood2
Member of DD Central
Posts: 4,247
Likes: 2,692
|
Post by Greenwood2 on Dec 18, 2019 10:19:16 GMT
Yes I really feel for the really high earners! You could put it in premium bonds or a cash ISA in the meantime. PB yes, agreed, cash ISA unlikely as those investing in this product will have used up all ISA allowance most likely. ISA transfers is the other option but may be a fee to discourage frequent small transfers. You can have a cash ISA and an IFISA and move cash between them if they are both flexible, so if you put £20,000 in an IFISA and removed say £100 and put it in a cash ISA you would have £19900 contributions in the IFISA and £100 contributions in the cash ISA. The rules just say 'cash' so I think it would work for BC. At the end of the tax year or when you get to £5000 in the cash ISA put it back in BC. Edit: Don't take my word for it! I did move funds between an IFISA and a cash ISA this year and it did work like that, but BC is a bit different.
|
|
pom
Member of DD Central
Posts: 1,922
Likes: 1,244
|
Post by pom on Dec 18, 2019 11:17:42 GMT
PB yes, agreed, cash ISA unlikely as those investing in this product will have used up all ISA allowance most likely. ISA transfers is the other option but may be a fee to discourage frequent small transfers. You can have a cash ISA and an IFISA and move cash between them if they are both flexible, so if you put £20,000 in an IFISA and removed say £100 and put it in a cash ISA you would have £19900 contributions in the IFISA and £100 contributions in the cash ISA. The rules just say 'cash' so I think it would work for BC. At the end of the tax year or when you get to £5000 in the cash ISA put it back in BC. Edit: Don't take my word for it! I did move funds between an IFISA and a cash ISA this year and it did work like that, but BC is a bit different. That idea will only work for current years funds
|
|
Greenwood2
Member of DD Central
Posts: 4,247
Likes: 2,692
|
Post by Greenwood2 on Dec 18, 2019 11:50:06 GMT
You can have a cash ISA and an IFISA and move cash between them if they are both flexible, so if you put £20,000 in an IFISA and removed say £100 and put it in a cash ISA you would have £19900 contributions in the IFISA and £100 contributions in the cash ISA. The rules just say 'cash' so I think it would work for BC. At the end of the tax year or when you get to £5000 in the cash ISA put it back in BC. Edit: Don't take my word for it! I did move funds between an IFISA and a cash ISA this year and it did work like that, but BC is a bit different. That idea will only work for current years funds Yes, but you are just juggling the odd less than £5000 (that you can't easily invest on BC), at the end of the year you make sure it's where you want it and start again the next year.
|
|
IFISAcava
Member of DD Central
Posts: 3,664
Likes: 2,988
|
Post by IFISAcava on Dec 18, 2019 11:57:05 GMT
That idea will only work for current years funds Yes, but you are just juggling the odd less than £5000 (that you can't easily invest on BC), at the end of the year you make sure it's where you want it and start again the next year. And assuming both your chosen cash ISA and the BC offering are flexible. I was looking at a new cash ISA for transition funds today (since virgin are reducing their rates to derisory 0.5%), and found that the one offering the highest rate and instant access was not flexible (Cynergy bank).
|
|
|
Post by ron on Feb 15, 2020 14:46:55 GMT
We have less than 2 months before the end of the tax year, and still no news on the BridgeCrowd's IFISA. I've started thinking the FCA is not willing to allow the BC offer IFISAs because they've found some faults with the platform. I hope I'm being wrong, but the BC's silence is deafening on this. I also note that recent loans are not being received terribly well in the primary market...
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,870
Likes: 11,097
|
Post by ilmoro on Feb 15, 2020 15:12:06 GMT
We have less than 2 months before the end of the tax year, and still no news on the BridgeCrowd's IFISA. I've started thinking the FCA is not willing to allow the BC offer IFISAs because they've found some faults with the platform. I hope I'm being wrong, but the BC's silence is deafening on this. I also note that recent loans are not being received terribly well in the primary market... FCA doesn't determine ISA manager status, that's HMRC. BC doesn't offer any product that qualifies for an IFISA AIUI (P2P loans, debt securities, bonds, cash) so until BC amends it model to offer such products (have they applied for a36h permission?) doesn't seem to be the possibility of an IFISA. Not sure the FCA is currently a factor (if they have concerns, based on previous cases they aren't going to tell anyone until its too late)
|
|