Peer to Business Lending
Alternative Finance Sector Report - October 2014 35
PEER TO BUSINESS LENDING
ALTERNATIVE FINANCE SECTOR REPORT
PUBLISHED
November 14
AUTHOR
Luke Jackson
Samantha Goins
NEW ISA (NISA)
In the 2014 Budget the Government announced that they would increase the amount that can be saved in an ISA from 1 July.
The allowance will rise to £15,000 (per annum) and for the first time all of this can be saved in cash. The new ISA is referred to
as a NISA.
Investors can choose a cash ISA, stocks and shares ISA or one of each – but can only invest up to the maximum of £15,000
across each in a single tax year. Investors can transfer current and previous years’ ISA savings freely between ISAs (depending
on provider).
Investors can choose to have just one single ISA which for the first time can hold both cash and stocks and shares.
SOURCE:
HMRC
Old Vs. New ISA Allowance (2013-2015)
As well as introducing the New ISA in
the 2014 Budget, the Government also
announced that peer-to-peer investing
will be included within the ISA wrapper
for the first time from next April (2015).
Unfortunately the Treasury have
embarked upon lengthy consultation
first but some workable solutions have
already been proposed including
creating a new type of ISA called a peer-
to-peer ISA. They will also look into how
debt securities offered via crowdfunding
platforms can be held within the ISA.
3 Options:
1.
Platforms offer stocks and shares ISAs
that invest solely in P2P lending - limiting
investors’ choices since they can only
invest in one cash ISA and one stocks and
shares ISA every year. Putting money into
a “P2P ISA” would mean they would be
unable to buy any shares or use funds in
an ISA elsewhere.
2.
Platforms could provide full stocks and
shares ISAs, offering not just P2P but also
shares and funds – this would require
platforms to undertake a huge amount of
work - but P2P platforms are nimble and
technologically advanced enough to be
able to do it.
3.
A new type of ISA could be created
specifically for P2P platforms, allowing
investors to continue going elsewhere
for a broader stocks and shares or
cash ISA – this gives investors far more
flexibility and choice as they don’t have
to solely invest in P2P in a single ISA
year. This is the most likely solution.
OR
OR
OR
OR
2013 - 14
2014 - 15
TAX FREE ISA
ALLOWANCE
CASH
STOCKS & SHARES
COMBINED
CASH
STOCKS & SHARES
COMBINED
£5,760
£11,520
£11,520
£15,000
£15,000
£15,000
