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*