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Other FAQs relating to ISAs

I am not sure if an ISA is the right product for me?

We cannot advise you as to whether a Lending Works ISA is the right choice for you. If you are unsure, we suggest you seek advice from an independent financial and/or tax advisor.

My deceased partner had a Lending Works ISA. Can I inherit their allowance?

Upon the death of an ISA Investor, their entitlement to tax exemptions will end. This does not mean that previous tax exemptions will be lost on ISA funds already within the ISA. However, any further interest or income after death will not be exempt from taxation.

Thereafter, we will close the ISA and transfer all ISA funds to the person who has Grant of Probate in relation to the deceased ISA Investor’s estate. Your inheritance will be dependent on the deceased ISA Investor’s Will or as applied under law.

You will not be able to take over the deceased ISA Investor’s ISA or make any further subscriptions to it.

What is the difference between the Lender Platform Terms and Conditions and the ISA Terms and Conditions?

The Lender Platform Terms and Conditions govern your membership of the Lending Works Platform, access to and use of the platform, the additional services we provide you and our relationship. This covers both your Classic Account and your ISA.

The ISA Terms and Conditions govern the Lending Works ISA and our relationship as ISA Manager and ISA Investor. There will be some elements of the Lender Platform Terms and Conditions which will be modified by the ISA Terms and Conditions for your ISA.

You should read both of these sets of terms and conditions side by side.

Where will my cash be held?

All funds in your Lending Works ISA will be held in a segregated client account with a UK bank. This is currently NatWest Bank Plc.

I have heard about “flexible ISAs”. Is the Lending Works ISA a flexible ISA?

The flexible ISA was introduced on 6 April 2016. However, it is not mandatory and we think this is most relevant for cash ISAs, where you might need instant access to your funds (which may be returned to your ISA later), rather than for peer-to-peer lending which is intended as a longer-term investment option. With that in mind, we will not be offering the Lending Works ISA as a “flexible ISA”.

What if I move abroad?

If you move abroad in any tax year, you can still keep your Lending Works ISA open, however, you will not be able to add any new funds to your Lending Works ISA or transfer funds to Lending Works from another ISA Manager, until you return to the UK. Any new funds you have subscribed in the tax year in which you move abroad may need to be removed from your ISA together with any relevant income, even if you made the subscriptions whilst you were still in the UK.  You may also need to skip an entire tax year before you are able to subscribe new funds to any ISA again.  

You must let us know immediately if in any tax year, you have been or will be out of the UK for more than 182 days so that we can determine if you are deemed to be “non-resident”. The period outside the UK does not need to be constant but calculated as a total number of days over the tax year.

What happens if I am made bankrupt?

If you are made bankrupt, you must let us know immediately and provide us with a copy of the bankruptcy order made by the court. Often we will receive this directly from the court or Official Receiver but you should always let us know by contacting our Customer Service team.

Depending on what the court order says, we may suspend your ISA and not allow you to access this or carry out any actions. You may not lose any tax benefits you have already received, but going forward the funds in your ISA may be owed to the Official Receiver and Trustee in Bankruptcy and accordingly we will need to take instructions from them as to how to manage your ISA. This will also impact your Classic Account. Your membership of the Lending Works Platform may also need to be terminated.

We understand this may be a difficult time for you but we must comply with all relevant insolvency legislation.