IF-ISA, beginner's guide to earning £1m Interest Tax-free!
ISA is an Individual Saving Account with TAX-FREE benefits on your earnings.
There are four types of Individual Savings Accounts (ISA):
- Cash ISA;
- Stocks and shares ISA;
- Innovative Finance ISA (IF-ISA); and
You can put money into one of each kind of ISA each tax year.
You must be:
16 or over for a cash ISA
18 or over for a stocks and shares or Innovative Finance ISA
18 or over but under 40 for a Lifetime ISA
You must also be either:
• resident in the UK
• a Crown servant (for example diplomatic or overseas civil service) or their spouse or civil partner if you do not live in the UK
You cannot hold an ISA with or on behalf of someone else.
An innovative finance ISA lets you use your tax-free ISA allowance while investing in peer to peer (P2P) lending.
Peer to peer lending is a form of investing where you directly lend money to borrowers and businesses. The borrowers then pay back the borrowed amount, with interest on top. The interest they pay is the return you get on your investment. You earn this interest tax-free.
Investors (IF-ISA holders) are linked with borrowers. A borrower could be a business, an individual or a property developer.
So, with an Innovative Finance ISA, your IF-ISA account contains P2P loans. With a cash ISA, it has cash, and with stocks and shares, it includes stocks and shares.
1. IF-ISA Allowance 2020/2021 - £20,000 - Expires on 5th April 2021: 23:59 - You lose any unused allowance - 🐢
2. IF-ISA Allowance 2021/2022 - £20,000 - Starts on 6th April 2021: 00:00 - 🐢
We would like to share the following model to show you how to earn over a £1m in Interest, Tax-free.
Our Accountants, Compliance and Tech teams were brainstorming in the boardroom and discovered a way to make over £1m net Tax-free interest using the Kuflink IF-ISA model*. Being Tax-Free, this boosts your returns by compounding the tax-free earnings that you can then watch grow exponentially over time. Kuflink's IF-ISA fits this model.
Consider the following to earn £1M TAX-FREE from Kuflink's 5 Year IF-ISA at 7%*. (The concept works on smaller amounts as the percentage return is the same).
Kuflink Innovative Finance ISA (IF-ISA)
- Pays up to 7.0% gross pa* Tax-free
- Transfer a current Cash ISA, Stock & Shares ISA, Lifetime ISA or IF-ISA.*
- Use your £20,000 annual tax-free allowance with Kuflink's IF-ISA*
- Get started today with just £100
Diversify funds across multiple secured loans.
- Entire Pool secured against UK Property* (1st & 2nd legal charges)
Average gross LTV (59.52%)(Figure correct 29th December 2020)
- Over £3m in ISA Transfers into Kuflink from Major ISA Providers
*Capital is at risk and Kuflink is not protected by the FSCS. Past returns should not be used as a guide to future performance. Securing investments against UK property does not guarantee that your investments will be repaid and returns may be delayed. Tax rules apply to IF-ISAs and SIPPs and may be subject to change. Kuflink does not offer any financial or tax advice in relation to the investment opportunities that it promotes.