Glossary · UK
What is Peer-to-Peer Lending ISA?
A common term for an Innovative Finance ISA used to hold peer-to-peer loan investments.
Full Definition
A peer-to-peer lending ISA is the everyday name for an Innovative Finance ISA (IFISA) used to hold peer-to-peer loans made through an FCA-regulated lending platform, shielding the interest earned from Income Tax. Returns depend on the creditworthiness of borrowers and platform underwriting quality, and capital is generally not protected by the Financial Services Compensation Scheme, so investors should treat it as a higher-risk alternative to a Cash ISA rather than a direct substitute.
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.