Investments  

Isas set for a further shake-up in 2016

Isas set for a further shake-up in 2016

The Treasury has confirmed it will ignore concerns about allowing Isas to hold debt securities through a crowdfunding platform, according to a paper published today (25 November) alongside the Autumn Statement.

Originally announced in the summer Budget, a consultation on whether to include investment-based crowdfunding in Isas followed, with the government now stating there was a “strong case” for allowing them to holds debt securities through a crowdfunding platform.

The paper stated that the government will introduce new legislation in next autumn which will allow savers to receive interest payments by lending money to companies over a period of time.

The securities will be held in the Innovative Finance Isa, which will be available for peer-to-peer lending from 6 April next year.

“This [new initiative] will provide Isa holders with greater choice over how to invest and will support the crowdfunding sector to continue to grow as a source of alternative finance for businesses,” the consultation paper reads.

The government said it will therefore work with the crowdfunding sector and other interested parties to further explore the case for extending Isa wrappers in this way.

Peer-to-peer investment platform Abundance welcomed the news, with co-founder and joint managing director Bruce Davis stating that people looking to invest for a good return, but without burning the planet or supporting businesses doing things that clash with their values, will then be able to enjoy their returns free of tax.

“This is also good news for the small to mid-size UK renewable energy and other socially useful projects that our investors want to help as they will become even more attractive investment assets.”

katherine.denham@ft.com