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We’re proud to say that our Innovative Finance ISA, the ‘CrowdProperty ISA’ has been hugely popular with our lenders. It’s not surprising considering ISA lenders not only get the 8% p.a. secured returns that CrowdProperty offers all lenders, but these returns can be tax-free within our ISA wrapper as an HMRC approved ISA manager. To illustrate the benefit, a 40% tax-payer would need to earn 13.3% return on their funds outside of an ISA tax wrapper to earn the equivalent post-tax returns. What’s more, whilst with all peer-to-peer lending your capital is at risk, we work tirelessly to best secure your funds and apply our unique ‘CrowdProperty Shield’ approach. The 3 elements of the CrowdProperty Shield are:
- The 1st Charge Security taken on all projects (just like the repossession rights a mortgage company holds over a residential home)
- The unparalleled specialist property expertise at the heart of the business
- The expertise-led, rigorous due diligence and loan monitoring processes
These elements work powerfully together to protect our lenders’ funds, resulting in our 100% capital and interest payback track record of £9,170,000 paid back, including £791,000 of interest, across 23 projects.
So why are we saying that the new ISA season is now… and what is an ISA season anyway?
‘ISA Season’ has traditionally been at the end of the personal tax year, in particular in March, when people race to commit their annual ISA allowance. This is a use it or lose it allowance and many people accrue significant ISA pots over a number of years that earn interest tax free. People often wait until March because many ISA products offer lower interest rates than inflation, meaning that your pot of capital is losing value every day.
With the CrowdProperty ISA, you can earn 8% tax-free secured returns and therefore you're losing money by NOT using your ISA allowance as soon as possible each year. So with the CrowdProperty ISA, the ISA season is always NOW. Open yours today and start earning 8% secured returns, tax-free now.
Your annual ISA allowance is up to £20,000 and with the CrowdProperty ISA, you can also transfer in unlimited existing ISA pots to make your money work harder. It’s also worth doing the maths and planning for the long-term with ISAs. For example, to get to an ISA pot of £1,000,000 (and therefore be earning interest tax-free on that large pot), the interest rate has a huge impact on the time that will take to build up. At a 2% interest rate, building a pot of £1,000,000 will take 34 years and you will have paid in £700,000 of that capital. At 8% it will take you 20 years, having put in £420,000 yourself with the £580,000 balance being earned in interest. This illustration assumes full utilisation of the funds as you need to allocate those funds into CrowdProperty projects and it should be reiterated that just like all peer-to-peer lending your capital is at risk and funds are not protected by the Financial Services Compensation Scheme.
There are no ongoing administration fees with the CrowdProperty ISA, only a nominal fee of £75 applying if you were to transfer your ISA pot to another provider. It’s also super simple to set up – if you’re a registered lender with CrowdProperty, all you need to do is enter your National Insurance number and you’re up and running. From your account you can then also easily transfer in your existing ISA pots where they may not be making your money work hard enough – the process takes just 30 days.
To find out more and set up your ISA quickly and easily, please visit: www.crowdproperty.com/campaign/isa.