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Have ‘Great Expectations’ after the 2015 Budget?


“Please, sir, can I have some more?” “More?!” This is what Mr Osborne is promising us in his 2015 Budget which will take place in just five days’ time… Of course, giving credit where credit’s due might often be viewed as sleight of hand for a government hell-bent on garnering voting hands in an imminent election.

So, providing Dear George puts his money where his mouth is in five days’ time, and you find yourself with a few extra coins to count later on, where will you invest them?

Sure, your capital might be at risk* but have you considered crowdfunding as a way to plough back your money? LendingCrowd has some ‘great expectations’ in terms of what the budget will mean for those who believe in the power of the crowd via peer-to-business crowdlending…

Seema Paterson, LendingCrowd’s Head of Corporate Affairs, says: “As a peer-to-business crowdlending platform we expect the 2015 Budget to bring some positive outcomes for the alternative finance sector. One is the inclusion of debt-funded p2p investments into an ISA product. This will allow those who invest in P2P to ‘self-elect’ and include these investments in their ISA. Also we expect that people will soon be able to offset losses from one loan against interest earned from other P2P investments.”

Money’s too tight to pension…crowdlending doesn’t mean big spending

One of the silver linings to come from next week’s budget will the government’s decision to allow pension holders to reinvest their pension pot. So, where will you reinvest some of your hard-earned money for your pension? To purchase an annuity to guarantee a life time income – only to part with decades of saving in a single stroke? Reinvesting your pension into crowdfunding is one way to potentially earn risk-based returns at a rate of *12.25%.

Savings accounts? Hmmm…this might be one option…but…

OK, no tax on savings might be less taxing news. The tax on savings, which previously stood at 10% for income of up to £2,880, will be cut to a 0% rate for savings up to £5,000 from April. However, only those whose non-savings income is less than £15,500 in 2015-16 will benefit from this change. Whatever the amount, investing in peer-to-business crowdlending is one of many options.

We’re also hoping the 2015 Budget will be good news for small businesses too…

One of Seema’s great expectations is hoping that the 2015 budget will be good news for small businesses, especially those who want to raise growth capital through crowlending platforms.

She adds: “For example, the CBI has urged the government to make life easier for medium-sized companies with more investment allowances and extending research and development credits. We are hoping that increases in personal allowances and pension reforms will give people more options to invest potential extra funds they may have. Peer-to-business crowdlending will give them one of many options to reinvest more capital. Retirees, for example, will have the option to take out and reinvest a lump sum from their pension into a P2P investment of their choosing.”

So, we welcome more from Mr O in five days’ time. But more for less for long term…

*If you invest through LendingCrowd you should understand that as a lender, your capital may be at risk and you might get back less than you invested. LendingCrowd is the trading name of Edinburgh Alternative Finance Limited, Company Number SC468392, authorised and regulated by the Financial Conduct Authority (IPRN 664753). LendingCrowd and its products are not covered by the Financial Services Compensation Scheme. Read more about the risks involved when investing and borrowing. LendingCrowd is a credit broker and not a lender. The company’s registered office is 23 Manor Place, Edinburgh, EH3 7DX.

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Andy Moore

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If you invest through LendingCrowd you should understand that your capital is at risk.

LendingCrowd is the trading name of Edinburgh Alternative Finance Limited, Company Number SC468392, authorised and regulated by the Financial Conduct Authority (Firm reference number 670991). LendingCrowd and its products are not covered by the Financial Services Compensation Scheme.

Read more about the risk involved when investing and borrowing.

The company's registered office is 23 Manor Place, Edinburgh, EH3 7DX.

Copyright © LendingCrowd 2019. All rights reserved.

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