Tax Savings Calculator for the Innovative Finance ISA
Use this calculator to project how much tax you could save by lending through an Innovative Finance ISA. The total amount you can save tax-free is £20,000 per year.
Use the form above to calculate your tax savings when lending through an Innovative Finance ISA. Your projected return is a reflection of the level of risk that you are willing to take when lending on a peer-to-peer lending platform.
The table below can be used as a rough guide for determining risk tolerance and its associated expected return rate. This return rate can then be used in the calculator above to project total savings in an Innovative Finance ISA.
Risk categories range from A+ to to E and reflect the rate at which a company is likely to default, resulting in bad debt. The estimated bad debt figure shows how much of your investment is expected to be unrecoverable. Platform fees and other costs may also apply. Whilst risk can often be diversified by lending small amounts to hundreds of different businesses across different risk bands, your capital is always at risk and peer-to-peer lending is not currently covered by the Financial Services Compensation Scheme.
|Est. annual bad debt rate||0.6%||1.5%||2.3%||3.3%||5.0%||8.0%|
|Risk band*||Est. return||Est. annual bad debt rate|
*The data provided is subject to change and may vary between peer-to-peer lending platforms.