ISA and Pension Investing
The Innovative Finance ISA (IF ISA)
WHAT IS THE IF ISA?
The Innovative Finance ISA is a type of Individual Savings Account (ISA*), sitting alongside Cash ISAs, Stocks & Shares ISAs and Lifetime ISAs. *An ISA is a ‘wrapper’ that allows you to invest without paying income tax or capital gains tax on any interest or profits that you earn.
HOW DOES IT WORK?
The Simple Crowdfunding IF ISA gives you the opportunity to hold investments in loan projects offered through the platform, allowing for tax-free returns on the interest that you earn. You can transfer your existing ISA and / or start a new one with Simple Crowdfunding.
Use your annual ISA allowance to invest into property projects, receiving average returns of 9% pa (pro-rata) tax free. Look for the 'IF ISA Eligible' banner on projects on our home page.
CREATE YOUR IF ISA ACCOUNT
If you are new to Simple Crowdfunding, you will need to Register before you can set up your IF ISA account. This will take a few minutes. If you are already registered, you can add an IF ISA account from your registered account.
Read our update about the Innovative Finance ISA to find out how you can transfer an existing ISA account.
REASONS TO INVEST THROUGH IF ISA
- Tax-free returns. The average interest rate offered for loan investments through our platform is 9% p.a.
- To set up and use your IF ISA is free. There are no set up costs, platform charges or advisor fees
- Transfer previous allowances into your account to benefit from tax-free returns
- You decide. You choose the projects that are right for you
- Invest up to £20,000 this tax year. You can also transfer funds from existing ISA accounts
ALLOWANCE AND CRITERIA
For the tax year 2019-2020, the ISA allowance is £20,000, subject to a maximum of £4,000 into a Lifetime ISA.
Anyone who is resident in the UK for tax purposes and over the age of 18 can open an account with us.
It should be noted that the IF ISA is not the same as the Cash ISA and is not protected by the FSCS guarantee.
BUILD YOUR TAX-FREE INVESTMENT PORTFOLIO
Once you have opened and funded your IF ISA account, choose from projects that are IF ISA suitable and receive tax-free returns on your investments.
You decide which projects you would like to be involved with. Once invested, a summary of your IF ISA and other investments are shown in your personal portfolio dashboard.
Read our update about the Innovative Finance ISA where we share further details.
Pension Investing (SSAS)
WHAT IS A SMALL SELF-ADMINISTERED PENSION SCHEME?
A SSAS is a small occupational pension scheme set up by the directors of a business who want control over the investment decisions in their pension. This type of pension is managed by Trustees, often the directors.
HOW DOES IT WORK?
You can invest using your SSAS into projects offered through Simple Crowdfunding.
Investments have to be on the approved list, which includes investing in commercial property. Your Trustee will be able to provide you with a full list of approved investment types and the restrictions (if any) placed upon them.
CREATE YOUR SSAS INVESTMENT ACCOUNT
You can set up a SSAS investment account with Simple Crowdfunding. Click on Register, and then provide the required details.
As part of the registration process, you have the option to register as an Individual, Company or Trust / Pension Scheme. Select ‘Trust / Pension Scheme’ and then follow the online screens.
REASONS TO INVEST THROUGH SSAS
- Asset-backed investment opportunities, equity and peer to peer loans
- Setting up your SSAS account for investing through our platform is free. There are no set up costs, platform charges or advisor fees
- You choose the projects that are right for you, allowing you to diversify your portfolio
- Pensions offer significant tax efficiencies. Income tax is not chargeable on investments held and there is no capital gains tax when investments are sold within your pension
DEVELOP YOUR PENSION INVESTMENT PORTFOLIO
Once you have opened your SSAS investment account, you choose which projects you would like to be involved with. Once invested, a summary of your investments, including updates, are available in your personal portfolio dashboard. Simple!
If you have any questions about investing through IF ISA or SSAS, please Contact the Simple Crowdfunding team.