Here at QuidCycle we love a good April Fool’s Day hoax. Whether it’s taking a colleague in with a spoof Facebook or Twitter video, an almost believable newspaper headline, or something more practical like a whoopee cushion on a chair, it’s great fun winding each other up and seeing who can be taken in.
However, while many hoaxes come down to something sounding too good to be true being proven to be just that, we’re super excited about a massive change to peer-to-peer lending that starts next week. And there is no hoax, it’s the real deal. From Wednesday 6th April 2016 peer-to-peer platforms like QuidCycle, which pass on investor’s money to borrowers at a higher rate of return than normal banks, will be able to offer tax-free interest on Individual Savings Accounts (ISA). That means you can invest up to £15,420 without paying a penny in tax on the interest. What’s more, you stand to make additional savings depending on the amount you invest*.
So what’s changed? Back in July 2015 the Chancellor announced the biggest shake up to personal tax allowances for savers in a decade. It means “Alternative Finance” providers (i.e. not banks) like QuidCycle, once authorised by the Financial Conduct Authority (FCA), are able to offer investors a new Innovative Finance ISA. They’re only for people who want to invest with a peer-to-peer platform. The benefits include:
- A higher rate of return on your investment
- Tax-free earnings on interest of investments up to £15,420
- Potential additional savings on interest.
It all boils down to you getting more out of your hard-earned cash.
We think you’d be foolish not to get in touch to find out more.
*Dependent on your income and personal circumstances, most people will be able to earn interest on their ISA without paying tax. **Capital at risk with peer to peer investment.
Please see our Understanding the Risks page. Disclaimer: The above information does not replace financial advice. Please ensure you seek independent financial advice before making any decisions regarding your finances. We also recommend that you carry out your own research to ensure that this is right for your own unique circumstances. Please note that we sometimes link to other websites but we cannot be held responsible for their content.