What is the Propifi IFISA?
The Propifi Innovative Finance ISA (IFISA) is a ‘tax wrapper’ that allows you to invest in our Peer to Peer (P2P) Loans without paying tax. Interest earned and gains made within the wrapper are exempt from tax. For someone paying UK Income Tax at 45% this means a saving of £450 for every £1,000 interest earned.
How does an IFISA differ from a Cash ISA?
Money invested in a Cash ISA will typically pay interest of less than 1% pa. In contrast, the returns on a P2P Loan within an the Propifi IFISA are expected to be 8% - 12%. However, you should note that these two types of investments carry very different risk profiles and you should ensure that you read all the available information including risk warning before deciding to invest.
How much can be invested in 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 an IFISA.
Can money held in an existing ISA be transferred to an 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 we 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 Loans.