Innovative Finance ISA (IFISA)
Enjoy all the benefits of peer-to-peer lending inside a tax-free wrapper

Here at Lending Works, we make investing as quick and easy as possible

With investments, your capital is at risk. Why Rate Lock?

Earn up to 6.5% p.a. tax free

Lend money to creditworthy borrowers, 100% tax-free.
Earn 6.5% p.a. over 5 years, 5.0% p.a. over 3 years.
Easily transfer any existing ISA to maximise your returns.
Keep control: re-invest, draw income or withdraw early.
Sign up in 2 minutes, then open your IFISA in 1 simple step.

View key ISA information

Interest rates shown are annualised, assuming loan repayments are reinvested at the same rate, and that any bad debt is covered by the Lending Works Shield. The tax treatment depends on your personal circumstances and is subject to change in the future.

Projected returns are not guaranteed. As with all investments, your capital is at risk.

How our IFISA works

Earn tax-free interest by lending money to approved, creditworthy individuals through our Innovative Finance ISA. It’s simple, fair peer-to-peer-lending with all the added bonuses that an ISA brings.

Invest up to £20,000

Invest your full 2019/20 ISA allowance with us, or split it across different types of ISA.

Transfer any existing ISA

Easily transfer your existing ISAs with help from our dedicated customer service team to maximise your returns. Transfers don’t count towards your annual ISA allowance, and could help you access the best ISA rates.

Earn tax-free interest

Earn 6.5% p.a. on 5-year loans, or 5.0% p.a. on 3-year loans. Take loan repayments as income or reinvest automatically for maximum returns.

Getting started
  • 1 Create your account
  • 2 Open your ISA
  • 3 Choose your rate
  • 4 Transfer money
  • 5 Earn tax-free interest

Find out more by reading our guide: What is an Innovative Finance ISA?

Interest rates shown are annualised, assuming loan repayments are reinvested at the same rate
and any bad debt is covered by the Lending Works Shield.

Projected returns are not guaranteed. As with all investments, your capital is at risk.

How we reduce risks

An Innovative Finance ISA is an investment. That means your capital is at risk and returns aren’t guaranteed. We are also not covered by the Financial Services Compensation Scheme (FSCS).

That said, we reduce the risk wherever possible. Here’s how.

Reserve fund and insurance

Our reserve fund and first-of-its-kind insurance come together to offer incredible protection against bad debt. Ever since we launched, our investors have received every penny on time.



Your ISA contributions are split across many personal loans. This natural diversification is one factor that makes Innovative Finance ISAs far less volatile than Stocks and Shares ISAs.


Total invested


Total lost


Figures relate to retail investors only (excluding institutional investors).
Reference period: 01/01/2014 to date; Source: Internal monitoring data.

Past performance is not a reliable indicator of future results, and returns aren’t guaranteed.

Accessing your ISA funds

Accessing money in your IFISA is easy: there's the option to receive a regular income or withdraw your funds early.

Withdraw early

As long as we find other investors to take on your loans, you can withdraw your funds early for a 0.6% fee.

Avg. withdrawal time

  < 1 day

Regular income

Automatically reinvest to maximise your returns, or opt to receive capital-and-interest or interest payments as weekly or monthly income.


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Frequently asked questions

What is Rate Lock?

Rate Lock ensures you get the rates you want.

We’ve introduced Rate Lock until May 5th 2019 to ensure our rates are not affected by the volatile ISA season. Historically, ISA season has driven rates down due to demand, giving you a weaker return on investment. Rate Lock enables all investments matched during this period to meet the advertised rate.

When you invest using P2P platforms your funds will initially go into a queue ready to be matched with creditworthy borrowers. If rates lower during the queue process, your investment will be matched at the lower rate. We don't want that to happen.

In line with our normal rate matching practice, any lending offer made during the Rate Lock period will receive the live rate at the time the loan is matched i.e. Rate Lock rates will not apply to any investment still queued at the time Rate Lock ends (May 5th 2019). To ensure your investment is matched at Rate Lock rates, we would advise making your investment at least a week in advance of Rate Lock closing, as queue times may be longer than usual during this busy period.

Who can open a Lending Works ISA?

To open an ISA with Lending Works, you must be aged 18 or over and resident in the UK (or a Crown servant or their spouse or civil partner).

How much can I invest into my Lending Works ISA?

You can invest up to £20,000 of new ISA funds for the 2019/20 tax year (6 April 2019 - 5 April 2020) and any income earned on those funds will be tax-free. You can also reinvest repayments on your loans without those counting towards your annual ISA subscription limit. In addition, any money you've saved or invested in ISAs from previous tax years can be transferred into your Lending Works ISA free of charge and won't count towards your annual ISA subscription limit.

Can I withdraw money from my Lending Works ISA?

You can withdraw money from your Lending Works ISA, or transfer money to another ISA provider, provided the funds are available in your Wallet i.e. not on loan or allocated to borrowers. If your money is still on loan, you'll need to reassign your loans using the Quick Withdraw facility before the funds will be available for withdrawal.

Note: replacing cash you've withdrawn from any non-flexible ISA will still count towards your annual ISA subscription limit.

How many ISAs can I have?

You can only subscribe i.e. save or invest new ISA funds into one ISA within each ISA category (cash, stocks & shares and innovative finance) each financial year. For example, once you've subscribed to a cash ISA in the current tax year, you won't be able to subscribe to another cash ISA until the start of the following tax year. The same applies to stocks & shares and innovative finance ISAs.

Note: these restrictions only apply to new ISA funds i.e. those saved or invested in the current tax year. You can transfer any money you've saved or invested in ISAs from previous tax years to as many ISAs as you like, provided the new ISA provider accepts transfers.

What is the Personal Savings Allowance?

Before dipping into your ISA allowance, it’s worth considering whether you're eligible for tax savings via the Personal Savings Allowance (PSA) first. With the PSA, basic rate taxpayers will be able to earn tax-free income (on both savings accounts and peer-to-peer platforms) of up to £1,000 each year, while for higher rate taxpayers this figure drops to £500. Unfortunately, additional rate taxpayers are not eligible for the PSA.

Key information

Click here for all the key regulatory information about our IFISA

1) Interest rates shown are annualised, assume that loan repayments are reinvested at the same rate and any bad debt is covered by the Lending Works Shield.

2) As your ISA Manager, we will report to HMRC in relation to your ISA Account as required under the ISA Rules. However, you will remain responsible for dealing with your own tax affairs, filing your tax returns and payment of any tax due on your interest. The tax treatment depends on your personal circumstances and is subject to change in the future.

3) Projected rates are not guaranteed and forecasts are not a reliable indicator of future performance. The value of your investments could fall as well as rise and you may get back less than you invest. Lending Works is not covered by the Financial Services Compensation Scheme (FSCS).

4) You may subscribe up to £20,000 into ISAs in the current financial year (2019/20). Lending Works only offers an Innovative Finance ISA. You cannot subscribe to more than one ISA in each category in each financial year. The categories are Cash ISA, Stocks & Shares ISA and Innovative Finance ISA.

5) To place funds in an ISA, you will need to open an ISA account with us and agree to our ISA terms and conditions.

6) You can withdraw or transfer your ISA at any time, provided your ISA funds are held as cash in your ISA account. If any funds are still on loan under loan agreements, you will not be able to withdraw or transfer them unless you exit the loan agreement(s) early using Quick Withdraw. Quick withdraw is subject to a fee and liquidity is not guaranteed. If you withdraw any ISA funds you will lose any ISA taxation benefits on those funds and you will not be able to replace them. You must only request a transfer using the designated transfer process made available to you. You must not make this transfer yourself by withdrawing the funds and sending these to the new ISA manager. This could result in the loss of ISA tax benefits on those funds.

7) You cannot transfer existing loans from your Classic Account into your ISA Account.

8) If a borrower fails to make a repayment we will take all required steps to collect any amounts outstanding. However, repayment from borrowers is not guaranteed. Typically, your returns will not be affected by late payments or defaults on your loans as the Lending Works Shield will step in and make the missed payments to you instead. However, the Lending Works Shield is not a guarantee against investment losses and your capital is at risk. If you do not receive repayment from a borrower and the Lending Works Shield is unable to make payment to you in respect of that missed payment, you may lose some or all of your interest and capital. In respect of that loan, no deduction can be made from your Annual ISA Limit, even where you have received no income or profit from the loan.

9) In the unlikely event that the Lending Works platform ceases to operate for any reason, for example in the event of firm failure, the management, servicing and collection of all outstanding loans would be transferred to a third party back-up service provider with whom we have in place a
back-up servicing arrangement. Our obligations as an ISA Manager would also be performed by our back-up service provider. Your loan agreements will remain enforceable and you will not lose the ISA status of funds in your ISA Account.

As with all forms of investment, your capital is at risk.

Any questions?

We’re here to help. Contact us with any question, Mon-Fri, 8am-6.00pm.

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