UK govt to allow P2P returns within Isas - Telegraph

UK govt to allow P2P returns within Isas - Telegraph

The UK government is preparing to allow the inclusion of peer-to-peer lending within Isas, giving investors a tax-free return on their investments, according to the Telegraph.

Citing industry sources, the paper says that Chancellor George Osborne will launch a consultation on the issue in his Autumn Statement on Thursday, with any changes coming into effect by April 2015.

Sites such as Zopa and Funding Circle have been gaining in popularity, offering access to finance in a tough market for borrowers and an attractive rate of return for lenders. However, all returns are taxable, with lenders required to include interest on self-assessment tax returns.

Eager to encourage growth in the nascent P2P market, the government now want to keep returns out of the taxman's hands by allowing investments within an Isa (Individual Savings Account).

P2P has been moving into the mainstream this year, with the Financial Conduct Authority setting out regulatory plans for the industry and the government handing over £55 million in taxpayer funds to platforms to distribute.

Autumn Statement 2013: Peer-to-peer 'to be included in Isas' - Telegraph

Comments: (0)

Find out more

Trending Stories