As announced at Summer Budget 2015, a new type of ISA, the ‘Innovative Finance ISA’, has been introduced from 6 April 2016, enabling interest and gains from peer-to-peer (P2P) loans to be tax-advantaged within the account. Regulations laid on 15 March 2016 amended SI 1998/1870 to include the conditions and rules for this new type of ISA, including those concerning the eligibility of P2P loans. A brief overview is provided below.
The general conditions for an Innovative Finance ISA are as follows:
•the account must be set up as an innovative finance account and made up of a single innovative finance component only;
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