Zopa announces changes to its Isa

Peer-to-peer lending platform Zopa has announced some changes to its Isa.

Zopa investors can now redirect their repayments into an Isa, allowing investors to gradually transfer their funds into an Isa without having to sell loans or pay fees throughout the process.

Funds transferred from non-Isa products into an Isa will contribute to the annual Isa allowance.

All account holders are given an Isa allowance of up to £20,000 per tax year, which can be spread across all types of Isas.

Once the funds in the Isa have been lent out on various loans, the repayments will not contribute to the Isa allowance, as the investor is effectively recycling the money in the Isa, and any interest earnt will be tax free.

Zopa recently announced that it had lent £100m in November via its platform.

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