Peer to peer lending may be soon included in ISAs
Industry sources say that a consultation on opening up ISAs to peer-to-peer lending - sometimes referred to as crowd funding - is expected to be unveiled by George Osborne in the Autumn Statement on Thursday. It's thought that any changes in this area would be likely to take effect in April 2015.*
What is peer-to-peer lending?
Peer-to-peer websites allow savers and borrowers to link up directly, with the aim of getting a better rate deal for both parties.
Current tax rules mean individuals involved in peer to peer lending have to pay income tax on profits earned, with customers asked to include any interest on self-assessment tax returns.
Supporters of the move argue that this change will offer significant benefits to those already involved in peer to peer lending schemes, as well as encouraging new investment.
The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.
No news, feature or comment should be seen as a personal recommendation to invest. If you are in any doubt as to the suitability of a particular investment you should seek independent financial advice.
* Source: http://www.telegraph.co.uk/finance/budget/10489168/Autumn-Statement-2013-Peer-to-peer-to-be-included-in-Isas.html