receive calls and emails every day asking about specific elements of
crowdfunding via our platform. Some of our most common queries are about IFISAs
(Innovative Finance ISAs) which were introduced in 2016. An IFISA allows people
to include investments that have been made via crowdfunded bonds or
peer-to-peer loans in an ISA, and, as with all Individual Savings Account (ISA)
products, the interest is currently gained tax-free.
the IFISA is relatively new, we have put together our most frequently asked
questions and our responses to help anyone considering holding their
investments in this way.
I put cash in my IFISA even if I’m not actively investing in anything?
of course. But it’s worth remembering the IFISA doesn’t pay any interest on
cash held only on investments made. However, if you want to use up any
remaining ISA allowances in the tax year (which runs from April to April) you
can deposit the cash in the IFISA, and the date of the deposit will count as
the date of subscription for your ISA allowance even if you invest the money in
an offer in the next tax year.
2. Can I retrospectively put bonds that I
have already invested in into an ISA?
unfortunately you can’t. It must be indicated at the time of application that
you wish to hold the bonds in an IFISA. Once the bonds have been issued, if
they aren’t held within an ISA, it’s not possible to move them into one.
What is the annual allowance for the
IFISA and how does it work?
annual ISA allowance for 2019-20 is £20,000. This is the annual limit for new
ISA subscriptions, which is applied across all ISA types. Therefore, you can’t subscribe
more than £20,000 across all ISAs you hold in one tax year. It’s worth
remembering though that it’s possible to transfer ISA subscriptions from
another ISA without it affecting your annual allowance (subject to transfer
4. Can I transfer cash out of my IFISA
Yes, absolutely. For example,
if you receive an interest payment and there are no further investments you
wish to make on the platform, you can request to transfer that cash from your
IFISA account to another ISA provider so that the ISA status of the money is
maintained. Transfers are made through completing an ISA transfer request form
with your new ISA manager and are subject to certain conditions.
other two options for cash held in your IFISA wallet are to reinvest it into
another live ISA eligible offer on the Triodos crowdfunding platform, or
withdraw the money to your bank account by using the ‘withdraw funds’ button
in your investment portfolio. If you do withdraw the money to your bank account, please note that the ISA status of the money will be lost.
5. Along with an IFISA, what other types of
ISAs does Triodos Bank offer and how do they differ?
offer three types of ISAs:
• Cash - a range of instant
access and fixed-term cash ISAs for cash savings
• Stocks & Shares - for investing in the
Triodos Impact Investment Funds
• Innovative Finance - for investing directly
in pioneering organisations delivering positive change via our crowdfunding
There are several differences between our ISA
products, which are outlined in full here. However, all are
focused on helping to support organisations which are focused on positive
change. It is also important to note deposits saved within the Cash ISAs are
also covered by the FSCS (Financial Services Compensation Scheme), whereas investments in the Stocks & Shares ISA and the Innovative Finance ISA are not.