What is the Lending Works ISA?
The Innovative Finance ISA (IFISA), a new category of ISA geared towards peer-to-peer lending, gives you the opportunity to shield your P2P income from tax. You can invest some, or all, of your annual ISA allowance (£20,000 for the 2017/18 financial year) into a Lending Works ISA.
Furthermore, the limit of £20,000 relates only to money subscribed during the current financial year, which means there is no limit to the amount of ISA capital accumulated over previous tax years which you can transfer into your ISA with us.
"Lending Works is the first large peer-to-peer company to offer an Innovative Finance ISA"
IFISA: The benefits
The Lending Works ISA helps to maximise your P2P returns. Here are just a few of the benefits you can expect:
- Open your ISA within minutes
- Subscribe up to the annual ISA limit and shield returns from tax
- Transfer in unlimited ISA money accumulated over previous tax years
- Enjoy insurance-backed protection from our Lending Works Shield
- Manage your money online 24/7 or consult our award-winning customer service team
How to set up your Lending Works ISA
Act quickly to open your ISA
We're anticipating a significant spike in lending volumes as a result of the new ISA. Because we want to match your money swiftly at all times, we will only be accepting ISA monies from lenders in limited, periodic tranches each time. Once this limit is reached, we will then temporarily be closing this window of opportunity until further notice.
So, if you want to get started with your Lending Works ISA, don't hesitate... Open your account today!
What our customers say
After researching, Lending Works offered the best balance of competitive returns and credible protection to me.
Frequently asked questions
Who can open a Lending Works ISA?
How much can I invest into my Lending Works ISA?
Can I withdraw money from my Lending Works ISA?
How many ISAs can I have?
What is the Personal Savings Allowance?
Find out more about the IFISA in our Ultimate Guide.
“Lending Works has improved the protection given to investors by launching extended insurance for all its loans”
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 (2017/18). 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 who is also an authorised ISA manager. 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.