Summer Budget: Innovative Finance ISA
Crowdfunding ISA ‘marks growth of sector’
This has been in the pipeline for some time and Mr Osborne’s announcement has been welcomed by firms working in the sector as an indication that this form of finance is gaining traction.
Stuart Lunn (left), chief executive of Edinburgh-based peer-to-business crowdlending platform LendingCrowd, said: “The Chancellor’s plans to introduce the Innovative Finance ISA next year indicates just how rapidly the alternative finance market is evolving.
“From 6 April 2016 the Innovative Finance ISA will allow people to invest their annual ISA allowance through peer-to-peer platforms without being taxed on any interest they may earn.
“At a stroke, this budget announcement opens up this retail investment product to the mass market by offering ISA investors more choice while also providing British businesses with greater access to funding. This is good news for the peer-to-business crowlending sector of the market.”
Emanuela Vartolomei, founder and chief executive of independent research company All Street, said: “The consultation is an important moment for the industry. Alternative forms of finance such as equity crowdfunding are becoming more popular across the UK and it is good to see the government is opening up the debate to whether investors who are taking a risk to support start-ups can keep their money within the ISA wrapper.
“The decision to create the innovative finance ISA and include peer-to-peer loans is a great start. The industry must now demonstrate that other investments should be part of the ISA too.”