Tax efficient Investing with Innovative Finance ISA

An ISA is an Individual Savings Account. It works like a normal savings account, except you don’t pay any UK income or capital gains tax.

There are 4 types of ISA available in the UK:

• Cash ISAs
• Stocks and shares ISAs
• Innovative Finance ISAs
• Lifetime ISAs

You need to be:

• Aged 18 or over for a stocks and shares, innovative finance ISA or cash ISA and 18 or over but under 40 for a lifetime ISA.
• A UK resident for tax purposes.
• Comfortable that the value of investments can go up as well as down.
• Prepared to invest for at least 5 years.

Please check on the gov.uk website for the permitted allowance for each tax year. This amount is set by HMRC.

You can put funds into each type of the four ISAs you qualify for in a given tax year, providing you do not exceed your total yearly allowance of £20,000.

You can apply to open an ISA account at any time, with the allowance beginning at the start of each new tax year, 6th April.

You can register by clicking here. Once you’re through to the registration page, we just need you to fill in some initial contact information and then you can get started with tailoring your experience by either becoming a Buyer or an Investor.

An Innovative Finance ISA (IF-ISA) is a type of tax-free individual savings account (ISA) that allows Investors to earn tax-free returns on peer-to-peer (P2P) financing, crowdfunding investments, and other alternative finance products.

Unlike traditional cash and stocks & shares ISAs, IF-ISAs allow Investors to invest their money directly in loans or investment opportunities, which are typically sourced through online platforms that match borrowers or companies seeking funding with Investors.

The aim of an IF-ISA is to provide Investors with greater flexibility and choice when it comes to their investments, while also potentially generating higher returns than those available through more traditional investment options. However, it is important to note that investing through an IF-ISA comes with higher risks, as the value of the investment can go down as well as up, and there is a risk of losing some or all of the capital invested. It’s important to carefully research and understand the risks involved before investing in an IF-ISA.

Go to the Sign Up page.

• You will need to go through the process of Signing Up as an Individual Investor
• Once you have completed your profile and entered your bank details, your details will be sent for onboarding approval.
• If your onboarding is approved, an Investment e-wallet account will be open for you.
• You can now Apply for an IF-ISA account.
• You will need to provide your National Insurance number and sign the IF-ISA declaration – PLEASE READ IT CAREFULLY
• We will then assess your eligibility for an IF-ISA account up to 5 working days from submission.
• If approved, you will be notified and an IF-ISA e-wallet account created for you.

Please check each Opportunity for the minimum Investment Amount. At present the minimum amount to Invest in a Nester Opportunity is £1,000.

There are no costs or annual fees in opening a Nester IF-ISA.

If you deposit more than the annual allowance into your IF-ISA e-wallet, then any excess will be transferred to your Nester Investment e-wallet account.

• You can reinvest any profits you receive from your IF-ISA investments into any other eligible Opportunities, as long as they remain in your Nester IF-ISA e-wallet account.
• You are not able to automatically re-invest, due to the structure of Nester Opportunities, as this is dependent on the minimum amount permitted to be invested per Opportunity.

• You can transfer cash balance from your existing Nester Investment Account to your Nester IF-ISA Account (up to the maximum annual allowance).
• You cannot transfer Investments from your existing Nester Investment e-wallet into your Nester IF-ISA e-wallet. You would have to Sell your Murabaha Contracts from your existing Nester Investment and then Allocate using your Nester IF-ISA allowance.

• You can transfer your existing ISA cash balance from your existing ISA provider to your Nester IF-ISA e-wallet.
• Once you have been approved for a Nester IF-ISA Account, you will be presented with a ‘Transfer Authority Form’ (TAF) on the Nester website which you will need to complete and submit.
• Any amount transferred that is above the current years allowance will be credited to your Investment account.
• Any cash ISA balance from previous tax years will be credited in full and not taken from your current years allowance.
• Transfers can take up to 15 working days between cash ISAs and 30 working days for all other types of ISA’s (including IF-ISAs).

• Transfer Outs are permitted on the cash balance in your IF-ISA account. If you have Invested in an Opportunity, you will need to liquidate (sell). Your new ISA manager must submit a transfer request to us.
• The new ISA Manager will have their own Transfer Authority Form for you to complete. The ISA Manager will then have to send this form to us either from an email address registered on TISA/or by post alongside their payment instructions for us to review and process.
• We ask ISA managers to send these types of requests via email to speed up the process (platformsupport@goji.investments).

The Nester IF-ISA is flexible, meaning you can withdraw and deposit into the account, as long as your total deposits do not exceed your annual allowance.

Each year, you can use your permitted allowance to deposit into your Nester IF-ISA account. This means you can accumulate your balance and earn Tax free profits on the aggregated sum of your Investments, as long they remain in your IF-ISA account.

ISA’s are only available to UK taxpayers.

• HM Revenue and Customs will monitor ISA returns provided by all financial institutions.
• If an Investor exceeds their ISA allowance, they won’t get any tax relief on the excess payments made. As of 6 April 2024, Investors can pay into multiple ISAs of the same type.

Unfortunately, we do not offer any ISA products for anyone under the age of 18.

Nester’s IF-ISA Manager is Goji Financial Services Limited, which is a company incorporated in England and Wales under company number 10234133 with its registered office at 10-12 Alie Street, London, E1 8DE and:

• is authorised and regulated by the Financial Conduct Authority under firm reference number 805323;
• is approved as an ISA manager by HMRC