There is big news out of the UK today. In his annual budget, Chancellor of the Exchequer (the equivalent of the US Treasury Secretary), George Osborne, made an announcement that will have a lasting impact on the P2P lending industry there.
Until now investors in the UK have not been able to be invest in P2P lending through the tax-advantaged ISAs (Individual Savings Accounts). And as we have discussed many times on Lend Academy taxable accounts make this investment less lucrative. While we have enjoyed investing through IRAs in this country for many years this has not been the case in the UK.
Here is the all important excerpt from the 2015 UK Budget:
Extending ISA eligibility – The government will introduce the Innovative Finance ISA, for loans arranged via a P2P platform, from 6 April 2016 and has today published a public consultation on whether to extend the list of ISA eligible investments to include debt securities and equity offered via a crowd funding platform.
This is a big moment for the industry in the UK so I reached out to the major platforms to get their reaction. They were all obviously very pleased with this development. This is what they had to say.