When lending to businesses, it’s important to remember that your capital is at risk. Find out more at our Risk matters page. Borrowers need to be mindful that defaulting might lead to the debt being passed to an agency for collection. LendingCrowd and its products are not covered by the Financial Services Compensation Scheme.
An Innovative Finance ISA (IFISA) is the tax-free* way to lend to British businesses. Just like Cash ISAs and Stocks & Shares ISAs, you can lend up to £20,000 this tax year, and you won’t pay tax on your returns*.
Your lending is automatically diversified across a portfolio of credit-assessed small business loans.
At a glance:
Minimum deposit £1,000
Make your money work
No fixed term – you can make full or partial withdrawals
Build your own portfolio with one click
*When lending to businesses, it’s important to remember that your capital is at risk. Tax treatment depends on the individual circumstances of each lender and may be subject to change in future. LendingCrowd and its products are not covered by the Financial Services Compensation Scheme.
Benefits of the LendingCrowd Income IFISA
Lend from £1,000 up to £20,000 in the current tax year
No income or capital gains tax to pay on your returns
Fully automated platform working for you
Transfer in your other ISAs quickly and easily
Create your LendingCrowd Income IFISA

Transfer an ISA
Transfer existing Cash ISAs, Stocks & Shares ISAs and Innovative Finance ISAs to LendingCrowd.
Transfer an ISAHow it works
The LendingCrowd Income IFISA allows you to earn tax-free returns* on your peer-to-peer loans. You decide how much to lend, from a minimum of £1,000 up to £20,000 this tax year. We’ll automatically diversify your funds across the loans available on our Loan Market – sit back and let our platform do the hard work for you. Your interest payments will be transferred to a separate account so you can withdraw them, while your capital repayments will be automatically lent out. If your portfolio value is between £1,000 and £1,999, no more than 2% of your funds will be lent to any one business. This maximum target exposure reduces to 1% for portfolios of between £2,000 and £4,999, and to 0.5% for portfolios of £5,000 and above.
The longer you hold the Income IFISA, the more diverse your portfolio will become, as your capital repayments will automatically be used to purchase new loan parts on your behalf. Remember that diversification is key to mitigating risk.
We also allow you to transfer in your other ISA accounts. This means you can lend even more with the Income IFISA without losing any tax benefits*.
*When lending to businesses, it’s important to remember that your capital is at risk. Tax treatment depends on the individual circumstances of each lender and may be subject to change in future. LendingCrowd and its products are not covered by the Financial Services Compensation Scheme.
Accessing your money
You can cash in all or part of your Income IFISA balance, but you must maintain an account value of at least £1,000 for the platform to continue lending on your behalf. If you want to withdraw your funds, you can sell loan holdings on our Loan Market. There’s a withdrawal fee of 1% of the capital withdrawn. The time taken to access your funds depends on how quickly your holdings are sold. The ability to sell depends on other lenders buying your loans.
It's easy to get started

Open a LendingCrowd Income IFISA
Complete a quick investor classification and appropriateness assessment to open your account – this is a requirement of P2P lending



Add funds to your account
You must pay in at least £1,000 to start lending to businesses and you can add to this at any time

Watch your loan portfolio grow
Keep up to date with your loan holdings and returns on your account page
Create your LendingCrowd Income IFISA

Transfer an ISA
Transfer existing Cash ISAs, Stocks & Shares ISAs and Innovative Finance ISAs to LendingCrowd.
Transfer an ISAIf 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.
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