Earn tax-free interest on your peer-to-peer investments up to your annual tax-free allowance
A New Type of ISA Now Available
Be innovative with your money. Invest in an innovative finance ISA (IFISA) and you’ll enjoy the benefits of peer-to-peer investments, bundled up in a tax-free wrapper.
The Innovative Finance ISA means that people can use the tax-free ISA wrapper to invest in a new asset class.
You can invest up to £20,000 as part of your annual ISA investment allowance, which can be transferred from previous ISAs accounts. Set up your investments, sit back and earn more.
Are you making the most of your money? With the Leap IFISA, you could earn tax-free returns of up to 5%. Invest now and make your money work harder for you so you can do more of what you love.
There’s a limit on how much you can invest in ISAs (Cash, Stocks & Shares and Innovative Finance) per year. The Annual ISA Allowance is £20,000 for 20/21. You can use this allowance to fully invest in one ISA, or spread the amount across various types of ISAs – as long as you do not go above the limit.
Common FAQs for ISA investors
ISA stands for “Individual Savings Account” (“ISA”). An ISA is a special type of account which acts as a “tax wrapper” around certain investments which allows any income and profits from those investments within the ISA to be free of income tax and capital gains tax.
There are three types of ISA available to individuals in the UK: a Cash ISA, a Stocks & Shares ISA, and an Innovative Finance ISA (IFISA).
The Leap ISA is an Innovative Finance ISA. We will act as your ISA manager and report to HMRC in relation to your Leap ISA account.
Leap offers an IFISA which allows you to invest up to £20,000 in peer-to-peer lending (P2P) without paying tax on your earned interest. The interest earned on your investments in an IFISA will not count towards your Personal Savings Allowance.
It is your responsibility to ensure you do not exceed the Annual ISA Limit in any tax year.
There’s a limit on how much you can invest in ISAs per year. The annual ISA Allowance is £20,000 for 20/21. You can use this allowance to fully invest in one ISA, or spread the amount across various types of ISAs – as long as you are under the limit. The limit is reassessed annually and may change for future tax years.
Interest received on your loans do not count towards your annual limit. Any unused portion of your annual limit cannot be carried forward to future years and will be lost at the start of the new tax year.
The annual limit only applies to new ISA funds; there is no limit applicable to old ISA funds being transferred to your Leap IFISA.
New ISA funds will become old ISA funds once the current tax year (2020/21) ends and the next tax year (2021/22) begins, and so on.
Your savings from a previous tax year do not count towards this year’s annual ISA allowance.
You can then fund your IFISA account in a similar way to your standard account and up to your annual limit, except in case of transfers from another ISA manager.
You must not make a transfer yourself by withdrawing the funds and sending these to us. This could result in withdrawal of your funds from your ISA and loss of ISA tax benefits on those funds. Contact us and we will initiate the transfer on your behalf and take the necessary steps to transfer your funds from your old ISA manager to Leap.