FAQ: Innovative Finance ISAs

The UK government introduced the Innovative Finance ISA (IFISA) on 6th April 2016. The “IFISA” allows individuals to use some (or all) of their annual ISA investment allowance to lend funds through the growing marketplace lending market, while receiving tax-free interest and capital gains.
You will be able to open a Basset & Gold IFISA from [17] March 2017.
The minimum that you can invest into a Basset & Gold ISA is £1,000.
There is no limit to the amount of your annual new ISA allowance that you can invest in the IFISA. You can invest up to £15,240 for the 2016/2017 financial year. This will rise to £20,000 in the 2017-2018 tax year. And you can still transfer funds from your existing ISAs into the IFISA.
It is only possible to invest funds into one ISA within each ISA category (cash, stocks and shares and innovative finance) each financial year. This means you can only subscribe to one IFISA this financial year.
One of the key benefits of an Innovative Finance ISA is that the interest and capital gains that are generated are tax free. Secondly, higher rates of interest are often available to IFISAs than regular Cash or Stocks and Shares ISAs. This means the opportunity for greater returns is higher than in regular ISAs.
An Innovative Finance ISA, unlike a cash or stocks and shares ISA, allows you to invest in marketplace lending without paying tax on the subsequent returns. This is the main difference.
Yes, it is transferrable. You can transfer your funds from your Cash or Stocks and Shares ISA into an IFISA.
The products that can be put in a Basset & Gold ISA are a bond at 6.12%, on a 3 year fixed term with fixed monthly income (paid monthly), or a 3 year compounding bond which will pay 20.1% over the 3 year term.
Clients are able to withdraw whatever money from monthly interest payments is in their account at any time, while the capital cannot be accessed as it is being invested. If a customer needs to withdraw the capital invested in a Basset & Gold ISA before the Bond reaches its term, they can do so by transferring the Bond to another Basset & Gold ISA holder.
No, due to the tax-free wrapper, you do not need to declare returns from your IFISA on your tax return.
Applying for a Basset & Gold ISA is a very quick and easy process that takes less than five minutes. Investors will then have their own dedicated relationship manager to ensure that the service they receive is second to none.
Yes, due to ISA regulations, you do have to be a UK citizen to invest in Basset & Gold’s Innovative Finance ISA.
No, you can only have one IFISA per tax year. However, this does not preclude you from having a cash, stocks or shares ISA as well.
We see our investors as our partners, so we make sure we only make money when our investors make money. We do not charge any fees or other hidden costs, and you will receive 100% of your interest (minus tax, except in the case of an ISA) according to the product you have selected. Our profit comes from the difference between what we get for our financing activities, and what we pay our investors, so you can rest assured that we are not tempted to increase the risk or operate in a way that is counterproductive to our returns, since our profit comes from the interest earned on investments and not from fees or other incentives that may potentially be in conflict with your objectives.
Basset & Gold provides financing to UK lending platforms. The business typically charges between 8-15% p.a. and because there are no middlemen or fees, this structure is more cost effective and so we are able to pass on higher interest rates to our investors.