The Budget included news from the Chancellor that peer-to-peer lending will be included in his ISA reforms.
According to data from Funding Circle, 41% of investors said they would invest more in peer-to-peer lending if it was included within ISAs. One in ten people said they would transfer their existing stocks and shares into peer-to-peer lending.
Additionally, TISA (Tax Incentivised Savings Association) estimates that more than £50 billion is invested in ISAs every year. If just 3% of this money was channelled through marketplaces such as Funding Circle it would create more than £1.5 billion of new lending to businesses annually leading to approximately 75,000 new jobs.
James Meekings, co-founder of Funding Circle, said: “This news is a huge win for British investors up and down the country, and represents a seminal moment for our industry. The inclusion of peer-to-peer lending in ISAs ensures British people earn inflation-beating, tax-free returns whilst helping support the country’s economic recovery.”
“Today’s news will open up peer-to-peer lending to a new audience. Over the last three years more than 30,000 people have lent more than £240M to over 4,000 businesses through Funding Circle – £130M of which was lent in 2013 alone. We’re excited that people will be able to use their ISA entitlements to benefit further from our unrivalled track record in the space.”