What is the Propifi IFISA?
The Peer to Peer investment can be held through the Propifi Innovative Finance ISA (IFISA). This is a ‘tax wrapper’ that allows you to invest in our products without paying tax. Any interest earned in the P2P investments held within the wrapper are exempt from tax. For someone paying UK Income Tax at 45% this means tax relief of £450 for every £1,000 interest earned. Please note that tax treatment is based on personal circumstances and is subject to change. If the Peer to Peer investment is not repaid due to borrower default of Propifi failure then you would not receive any tax benefit from holding the ISA, this is only applicable to interest earned. You will not be able to sell or trade P2P agreements at market value on a secondary market.
How much can be invested through the Propifi IFISA?
Every UK resident over the age of 18 has an annual ISA allowance of £20,000 all of which can be invested in via an IFISA in Peer to Peer loans.
Can money held in an existing ISA be transferred to the Propifi IFISA?
Yes! There is no limit on amounts that can be transferred from another Cash or Stocks & Shares ISA to an IFISA. Please note that the ISA manager can only accept transfers of cash. This means that if you want to transfer a Stock & Shares ISA to the Propifi IFISA you will need to instruct your existing ISA manager to sell your shares.
Can interest earned in the Propifi IFISA be reinvested?
You have the option of withdrawing interest or reinvesting in further P2P products.