Peer-to-Peer Finance Association (P2PFA) member, Lending Works, has received ISA Plan Manager status from the HMRC allowing it to offer the Innovative Finance ISA to UK investors.
Lending Works has lent almost £40million since inception in 2014. The peer-to-peer lending platform facilitates investment in personal (consumer) loans. 65% of Lending Works’ investors is retail, with 35% of funds coming from institutions – a common trend in P2P lending, evidenced by the securitisations Zopa and Funding Circle experienced this year, respectively .
The consumer-lending platform received full FCA authorisation in October, anticipating HMRC approval early 2017. Since gaining full permissions, Lending Works has revamped its website – something the platform wanted to do before offering investors the tax-efficient wrapper.
Lending Works is the only member of the eight-strong P2PFA authorised and approved to offer the IFISA. With major platforms missing out on the 6th April launch of the IFISA, awaiting full authorisation, Lending Works has a big opportunity to edge ahead of its competitors in 2017.
Crowdstacker and Crowd2Fund have seen strong traction with their IFISA products, having received full authorisation and ISA status prior to the IFISA launch earlier this year. Now, almost 2017, a few more P2P platforms have joined the FCA authorised club, but Lending Works is the first to announce its status as an ISA Plan Manager.
A Lending Works representative told Orca:
Having gained our full FCA authorisation in October, we are pleased to confirm that we have also received official approval as an ISA manager from HMRC. This represents the final cog in the regulatory wheel, and we now look forward to launching our new ISA in the New Year.
Investors in other P2P lending platforms will be waiting eagerly to hear if their chosen platform(s) is next to offer the tax-efficient ISA wrapper. The regulators have taken their time, but the Lending Works authorisation and approval may be the signal to other P2P lenders that the tide is turning and perhaps they’ll be next to join the fully authorised club.