P2P ISA

These are the errors that I noticed:

1. "only receive tax benefit on and upto the yearly allowance". You cannot subscribe more than the yearly allowance. You can receive ISA tax benefits on an unlimited amount of money, millions of Pounds if you have that available to transfer in. "upto" is traditionally two words, not one.

2. "however you wish". No, you may only have current year subscribed money in a single IF ISA, not any number of them, but you can serially move it all from one to another to have an unlimited number in the current year, just with only one having the current year money at each point in time.

3. "Cannot ... Open more than one IFISA in a single year". There is no limit on the number of IF ISAs you can open, unless you have one with all providers and the maximum number in those which allow more than one. Only one can have money subscribed in the current year at a time, the others can be funded with past year money from any type of adult ISA.

4. "Can... Open a 2nd IFISA 12 months after initial IFISA was opened" There is no requirement to wait twelve months between opening IF ISAs. If there were 50 available you could open 50 on the same day if you wanted to, just as with cash or S&S ISAs.

Hi,

Appreciate your kind words and thank you for your observations, we're seeking to update and clarify the infographic at this time. We have input a risk warning around FSCS, however are looking to make it more prominent. 

In a nutshell what they are doing is extending the scope of IFISAs to include transferable debt securities issued by companies or charities that are made available to investors through an electronic platform.  The distinction between p2p loan parts and securities is a bit of a fine one, but it is generally accepted that regular p2p loan parts are not securities.  There are detailed conditions that I don't have time to digest at the moment. 

I'd be interested to know whether bonds issued through Downing Crowdfunding would be eligible.  No doubt Downing will tell us in due course but meanwhile the description in the FAQ including in particular this Q&A might be enough for james to have a view. www.downingcrowd.co.uk/help/faq/can-i-sell-my-bond.

I don't have any other crowdfunded investments of this nature and am not really familiar with the market.

Not so.  Loan parts purchased on a secondary market are still simple debts (assuming that they were simple debts in the first place). 

The distinction you are thinking of is that second-hand simple debts are chargeable assets for CGT purposes, whereas they are not chargeable assets for the original lender.  See HMRC guidance HS296 www.gov.uk/government/publications/debts-and-capital-gains-tax-hs296-self-assessment-helpsheet.

Most of this thread is a few months old (appreciate a lot of comments on specific platform threads) and just interested to hear what people are doing half way through the tax year with their IFISA?

I was hoping for P2P element of IFISA to happen a little sooner so have kept some cash in a cash ISA for too long so have we been transferring our cash ISA's into a IFISA with a bank/building society or waiting for one of our favourite platforms to open an IFISA hopefully within the next 6 months?

What is working well for people?

Thanks

I assume you would have to pay the funds back into your cash ISA before the end of this tax year and take it out again in the new tax year, assuming you haven't been able to invest in a p2p ISA by then.