27th March 2025
With the tax year ending on 5th April, now is the time to take full advantage of your Innovative Finance ISA (IFISA) allowance and maximise your tax-free returns.
What is the IFISA Allowance?
Every UK taxpayer has an annual ISA allowance of £20,000, which can be allocated across different types of ISAs, including Cash ISAs, Stocks & Shares ISAs, and IFISAs. IFISAs allow you to invest in peer-to-peer loans while earning tax-free interest.
Why Maximise Your IFISA?
IFISAs could offer higher potential returns, unlike Stocks & Shares ISAs, which are subject to stock market fluctuations, IFISAs provide fixed interest returns on loans to UK businesses.
Three Key Ways to Make the Most of Your IFISA Allowance
Your £20,000 annual allowance cannot be rolled over to the next tax year, meaning any unused amount is lost. If you have uninvested funds, consider allocating them to your IFISA before the deadline to ensure maximum tax efficiency.
Crowd2Fund IFISA investors receive monthly repayments, which can be reinvested into new opportunities. This compounds your earnings, helping to grow your portfolio faster over time.
Spreading your investments across multiple businesses helps manage risk. The Crowd2Fund Exchange also offers investors the opportunity to buy and sell loans, providing an additional way to diversify and potentially exit investments early.
Transferring an Existing ISA to an IFISA
If you have funds in a Cash ISA or Stocks & Shares ISA, you can transfer them to an IFISA free of charge to potentially access higher returns. Click here to transfer your ISA today.
Final Thoughts: Act Before 5th April
Maximising your IFISA allowance before the tax year ends ensures you take full advantage of tax-free earnings and higher returns. Whether you’re diversifying your portfolio, reinvesting repayments, or transferring from another ISA, now is the perfect time to optimise your investment strategy.
To learn more about the Crowd2Fund IFISA and explore live investment opportunities, visit: www.crowd2fund.com/ifisa
Capital at risk. Tax treatment may vary.
Past performance and forecasts are not reliable indicators of future results. Your capital invested is not covered for compensation in the event of a loss by the FSCS. Tax treatment will depend on the individual circumstances and may be subject to change. Please see our Risk section before making an investment decision.