Update on the Funding Circle ISA

Following our last update in April, we wanted to keep you up to date on our progress towards launching the Funding Circle ISA.

As you may know, in order to launch an Innovative Finance ISA, all peer-to-peer lending platforms are required to be fully authorised by the Financial Conduct Authority (FCA). We have been operating under interim permission since April 2014, and we continue to work closely with the FCA. Although significant progress has been made, it is important that the FCA completes this process in a thorough manner.

Therefore, we do not yet have a date for when the Funding Circle ISA will be available, however as soon as we do, we will let you all know.

Other ways to earn tax-efficient returns

In the meantime, if you are looking for tax-efficient returns you could consider the following:

  • The current tax year ends on 5 April 2017, so there is still plenty of time to take advantage before the subscription deadline. You can also open a Cash or Stocks & Shares ISA elsewhere and transfer it over to the Funding Circle ISA when it becomes available.
  • If you are based in the UK, you can earn tax-free returns by holding shares in the Funding Circle SME Income Fund through either a Stocks & Shares ISA or Self-Invested Personal Pension. Speak to your financial adviser for more information.
  • Thanks to the new Personal Savings Allowance introduced by the Chancellor last year, the first £1,000 of interest earned for basic rate taxpayers and the first £500 of interest for higher rate taxpayers is now free of income tax. The Personal Savings Allowance is not available for additional rate taxpayers. This applies to interest earned through Funding Circle as well as through other traditional savings accounts. More information, including a link to the full guidance from HMRC, can be found in our F.A.Q
  • If you are lending as an individual, a new bad debt relief is also available through peer-to-peer lending platforms for loans that have become irrecoverable. The tax statement available to you has been updated to reflect these changes, and more information can be found in our F.A.Q.

Remember, by lending through Funding Circle or investing in the Funding Circle SME Income Fund your capital is at risk.

We hope this update has been useful, however if you have any further questions please feel free to contact us and we’ll be happy to help

Enjoy lending,

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

Senior Communications Manager


7 thoughts on “Update on the Funding Circle ISA

  1. @Funding Circle… you are very charitable towards the FCA and their slow road to due diligence. I, for one, am impatient, and more than a bit vague as to what the FCA ever did for me.

    • Hi Alexandre, the referendum result will have no impact on the Funding Circle ISA, which we will launch once we have received full FCA authorisation.

  2. It seems to have been a long time since there was any news on the Funding Circle ISA, and indeed a whole tax year of tax-advantageous earnings has passed us by with nothing more than

    “Therefore, we do not yet have a date for when the Funding Circle ISA will be available, however as soon as we do, we will let you all know.”

    Is it going to happen, or not?

    …and if not, why not?

    • I agree Cliff!!! There is precious little information coming out of Funding Circle or indeed, any of the other Peer to Peer Lenders!!! This “Update” from the “Communications Manager” tells us absolutely nothing!!! What progress HAS been made? What is the timetable for future progress? Are there regular meetings with the FCA? What are the problems that are causing the delay??

      I guess most of us here are pretty financially savvy…..so PLEASE Funding Circle…..TELL US WHAT IS GOING ON!!!!!!!!!

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