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Opening your Lending Works ISA

Opening a Lending Works ISA only takes a few minutes. To start earning tax-free P2P returns, simply follow these easy steps:

> Create a Classic lender account, or sign in to an existing account if you are already a lender
> Click 'Open my ISA' from the dropdown at the top right of your lender dashboard
> Complete the ISA application form
> Accept the declaration, and click 'Open my ISA' to confirm

That's it! We'll get back to you very quickly to confirm that your ISA has successfully been opened.

Please note that in order to open an ISA with us, you must meet the following criteria: 

> You must be 18 years of age or over; and
> You must be resident in the United Kingdom for tax purposes or, if not so resident, either perform duties which, by virtue of Section 28 of Income Tax (Earnings & Pensions) Act 2003 (Crown employees serving overseas), are treated as being performed in the United Kingdom, or I am married to, or in a civil partnership with, a person who performs such duties

To place new funds into your Lending Works ISA:

> You must not have subscribed to more than the annual ISA Limit in total to a cash ISA, a stocks and shares ISA, and an Innovative Finance ISA (or a combination) in the current tax year; and
> You must not have subscribed to another Innovative Finance ISA in the current tax year

If you think you do not meet the criteria above or do not do so after you have opened a Lending Works ISA, you must let us and HMRC know immediately. We may ask for proof of any of the above and you will be asked to sign a declaration which we are required to obtain by HMRC.

To open a Lending Works ISA, you will need to register as a lender on our platform by opening a Lending Works account. You will then have the option of opening an ISA by following the process set out above. You will need to sign our ISA Terms and Conditions, in addition to a declaration which is required under the ISA Rules. Once you have created your ISA, you can add new ISA funds to your account using the process set out in your ISA.

You may also transfer the following into your ISA:  

> Current-year subscriptions placed in an ISA with another ISA Manager in the current tax year (subject to limitations); and
> Subscriptions from previous tax years held in any existing ISA(s) with other ISA managers

Each individual will need to have their own Lending Works account (which includes your ISA). Each individual must also become a Member and ISA Investor in their own capacity, and open their own Lending Works account (which includes your ISA) with us.

Please note: ISAs are only available to individuals and not legal entities such as businesses.

Will I earn interest on my money as soon as my funds are placed into my Lending Works ISA?

No. Unlike a cash ISA, you will only start earning interest on your funds once they are on loan to borrowers. If you do not make any lending offers within your ISA, you will not gain any interest.

New ISA subscriptions to your Lending Works ISA will still count towards your annual ISA limit whether they are on loan or not.

Please note: There can be a lag of up to 14 days from when you make a new lending offer to when your funds are lent under one or more loan agreements. However, funds re-invested are usually re-lent within one business day.

Why do I need to sign a declaration?

When you apply for a Lending Works ISA, we are required by law to ask you to sign a declaration. You will only need to do this once - provided you subscribe funds to your ISA each tax year.

If an entire tax year passes without any further subscriptions from you, we are required by law to ask you to sign a new declaration. Until you do this we will not be able to accept any new subscriptions or effect any transfers in or out of your ISA. This will not impact the funds already in your ISA and those on loan, including repayment of capital and interest on those funds.

What is an ISA manager?

An ISA manager is a firm who is approved by HMRC to open and manage ISAs for customers. Lending Works is an ISA Manager. By signing our ISA Terms and Conditions and ISA Declaration you authorise us to be your ISA manager in relation to your Innovative Finance ISA.