Funding Circle

Funding Circle Isa to launch next week

Peer-to-peer platform Funding Circle has announced that it will start rolling out its Isa account to all current investors from next Thursday (30th November).

The Funding Circle Isa will work in the same way as the existing Funding Circle account, but with a number of new benefits.

The platform will rename existing Funding Circle accounts as the classic account and they will carry on operating alongside the Isa.

Funding Circle expects to see strong demand for its Isa and to manage this interest in the fairest way, it will start by opening the Isa account to all current investors who have created an account before 23rd November 2017 in stages.

Access to the Isa will be open to investors in the following order:

  • investors who are actively lending (have lent to a business since 1st May 2017)
  • investors not actively lending but who have previously transferred in funds
  • investors who have not previously transferred in funds
  • new investors and those who have opened a classic account after 23rd November 2017.

Initially to help manage demand, investors won’t be able to transfer any existing Isa subscriptions to the Funding Circle Isa account, but will be able to transfer their Funding Circle Isa to another Isa provider. 

However, loan parts that can’t be sold won’t be transferred and will no longer be eligible for tax-free interest.

Investors will also be unable to transfer loan parts directly from their classic account to their Isa account due to regulatory restrictions.

As with the existing Funding Circle accounts, no fees will be charged for selling loans through the Isa.

The Isa will be a flexi-Isa meaning investors can withdraw any available funds without affecting their annual £20,000 Isa subscription limit, as long as funds are transferred back by the end of the tax year.

The Isa can be opened through existing Funding Circle accounts, and the initial minimum investment is £1,000.

James Meekings, co-founder and UK managing director of Funding Circle (pictured above, centre), said: “We’re excited to be launching our Innovative Finance Isa, offering investors attractive stable returns that are tax free.

“To date, investors have earned £156m of net interest, more than 6% per year since 2010.

“This is fuelling economic growth, helping businesses in all sectors across the country to grow and thrive."

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