ThinCats launches IFISA a year after HMRC approval
Business lender ThinCats has launched an Innovative Finance ISA (IFISA), more than a year after receiving ISA manager approval from HMRC.
The peer-to-peer lender initially opened up its IFISA to existing users only, before expanding this to welcome new investors onto the platform.
It initially announced its IFISA plans in August 2017, with an official ISA launch expected by December 2017. However, the platform opted to push back its IFISA launch date while it implemented new systems to administer ISA transactions.
The ThinCats IFISA is not currently accepting transfers of other existing ISAs into its IFISA, but it hopes to be able to accept ISA transfers in early 2019. Investors can shelter up to £20,000 within the IFISA in each tax year.
ThinCats was founded in 2011, making it one of the first P2P business lenders in the UK. It allows investors to lend directly to UK businesses, with returns of between seven per cent and 15 per cent, depending on the loan being funded.
There is a minimum investment value of £1,000, and investors can choose to either invest in individual loans, or via a diversified loan portfolio. Both of these investment options are available within the IFISA wrapper. This means that investors could earn up to £150 in tax-free interest payments for every £1,000 that is invested per year. This money can then be re-invested during the following tax year to avail of compound interest.
To date, ThinCats has funded 943 loans worth a cumulative total of almost £300m. Investors have earned average annualised interest rates of 10.77 per cent over the past eight years.
Updated: Tuesday, November 27th, 2018