The Funding Circle ISA – latest news

As you may be aware, the government launches the Innovative Finance ISA in the new tax year, which will enable you to earn tax-free returns by lending to businesses directly through Funding Circle.

In order to launch an Innovative Finance ISA, all peer-to-peer lending platforms are required to be fully authorised by the regulator, the Financial Conduct Authority (FCA).  We have been working closely with the FCA on our submission and our work with them is progressing well. The FCA is close to completing their review process with us, however it will not be completed in time to launch the Funding Circle ISA on April 6, the first day of the new tax year.

We are excited to launch the Funding Circle ISA as soon as we have received full authorisation from the FCA and been approved as an ISA manager by HM Revenue & Customs, and are working closely with the FCA as it completes its review. We will keep investors updated with expected timings for launch of the ISA over the next few weeks.

In the meantime, we are pleased there are other ways investors can earn tax-free returns through the Funding Circle marketplace. Investors in the UK can hold shares in the Funding Circle SME Income Fund through either their existing Stocks & Shares ISA or Self Invested Personal Pension.

The Funding Circle SME Income Fund provides access to a diversified portfolio of Funding Circle loans across Funding Circle’s global geographies in the UK, USA, Germany, Spain and the Netherlands. The target Net Asset Value total return is 8-9% per annum, and the annual target dividend yield is 6-7 pence per share. For further information on the Funding Circle SME Income Fund, please visit the website: www.fcincomefund.com. Actual return may be higher or lower as by lending to businesses, your capital is at risk.

Information on the Funding Circle SME Income Fund can also be found on our blog.

Please contact your financial adviser with any questions about including shares in the Funding Circle SME Income Fund within your Stocks & Shares ISA or Self Invested Personal Pension.

The Funding Circle team

*This blog post is provided for information purposes only and is not intended to be construed as an offer, invitation or inducement to engage in investment activity in relation to – or a financial promotion of – Funding Circle SME Income Fund. Funding Circle does not give investment advice or recommendations and this blog post should not be relied upon as such*

Jack Pritchett

Customer Communications Manager

 

18 thoughts on “The Funding Circle ISA – latest news

  1. Hi, when the Funding Circle ISA is launched, will it be possible for people with an existing portfolio of loans to transfer them into the ISA (subject to their maximum ISA allowance for this tax year)? Thanks.

    • I have been told no. You will either have to sell your present loan parts or invest new money

      • Thanks Dot, this is correct. Due to regulatory reasons we are unable to allow existing loan parts to be transferred over to the Funding Circle ISA.

          • Hi Simon, available funds will need to be withdrawn from your Funding Circle account before being deposited to your Funding Circle ISA.

  2. With the change with no tax on the first £1,000 interest earned on savings, would the first £1,000 earned within Funding Circle be exempt from tax also? Or is peer-to-peer lending not included within that?

    • Hi Graham,

      We are continuing to work with the FCA on our submission, however we do not yet have a timescale for when the process will be completed.

      We will let you know as soon as we know more.

    • Hi, we are still continuing to work with the FCA on our submission, we will let you know as soon as we know more.

    • Hi Paul, we are still continuing to work with the FCA, we don’t yet have a time frame but we will let you know as soon as we know more.

      • Could investors be given a little more informative detail, beyond the bland answer ‘we are continuing to work with the FCA…’ which tells us nothing?

      • Are you tracking the FCA’s progress in any way or are you completely in the dark? Thank in advance, Paul

  3. Its March and this years allowance will go elsewhere unless they can sort by 5th April.. such a shame.

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