Hannah Maundrell, Editor in Chief at money.co.uk, comments on the 2015 Summer Budget announcement that a new Innovative Finance ISA will be introduced in April 2016.
Hannah Maundrell, Editor in Chief at money.co.uk comments:
"The UK Government has been toying with the idea of allowing people to invest their ISA allowance in peer-to-peer products for some time now and I suspect today's announcement is likely to be the 'shot in the arm' the industry needs to see accelerated growth. In fact, our research shows that 40% of consumers claim they would invest in a P2P product if they could do so under their tax free ISA allowance.
"People might be put off by the fact that many of these products are quite complicated. If they are really going to takeoff, I think that simplification is key. You can't escape the fact that there are some great returns on the table but, as with all investments, these accounts are not without an element of risk. Consumers shouldn't plunge their life savings in without understanding exactly how their money will be used. Equally, they are not covered by the FSC."