From 1st November 2016, investors will be able to lend to UK businesses via bonds secured against the firm’s operational assets.
The news comes just months after Bridging & Commercial was told that some advisers were struggling to get to grips with the changes to the industry.
In a statement, crowd bond investment platform Downing Crowd said: “It's true that a lack of understanding among investors often sees different types of crowdfunding lumped together as being too risky.
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“But crowd bonds are actually a very simple form of lending that is, in many ways, less complex and risky than stocks and shares, particularly when you consider the amount that events such as Brexit have wiped off markets recently.
“Provided that investors are fully aware of the relevant risks involved, then this extension of the IFIsa could create some very exciting opportunities for UK investors.”
The new wrapper will prevent crowd bond investors from having to pay income tax on the interest earned above the £1,000 personal savings allowance.
Downing Crowd added: “Crowd bonds look set to become a popular addition to the IFIsa as many investors seek to further diversify their portfolios, thanks to the rise in the annual Isa allowance from £15k to £20k.”
Earlier this month, the LendIt Europe Conference at the InterContinental O2 heard that the IFIsa could double peer-to-peer funding.