Innovative Finance ISA


Earn 6.5% p.a. tax-free while giving British businesses a boost. The Innovative Finance ISA (IFISA) wrapper enables you to use your annual Individual Savings Account (ISA) allowance to earn tax-free returns from Peer-to-Peer lending.


Why invest in the FOLK2FOLK IFISA?

  • ​Receive monthly tax-free interest of 5.5% p.a. or 6.5% p.a.
  • Invest your full 2017/2018 ISA allowance of £20,000
  • Transfer your existing ISA funds
  • Secured against UK property
  • Support local businesses, nationally

Risk warning:

  • Peer-to-peer lending is not covered by the Financial Services Compensation Scheme (FSCS)
  • With peer-to-peer lending your capital is at risk if the borrower is unable to repay the loan
    Read more about how we manage risk


A ​​1% Annual Administration Fee + VAT (capped at Max. £1000 +VAT per tax year) of the subscription amount applies for the creation and ongoing administration of your IFISA wrapper.  This annual fee is calculated on a pro-rata basis from the date your funds are received into your IFISA wrapper and will be collected by Direct Debit from your specified account the following month.


​​Tax overview of FOLK2FOLK IFISA

  • Take a look at our Interest after Tax and Fees table to understand the implications for different tax brackets and the impact of fees.
  • Please note that FOLK2FOLK cannot give tax advice and you should seek tax advice if required.
  • Tax treatment depends on the individual circumstances of each client and may be subject to change in future. 


How to set up a FOLK2FOLK IFISA wrapper

​​If you are an existing FOLK2FOLK Lender:

Please email and we will send you the application form to set up your IFISA wrapper.

If you are not currently a FOLK2FOLK Lender:

You will first need to become a FOLK2FOLK Lender and tell us that you 'd like to set up an IFISA tax wrapper.  

ISA Transfers

You can transfer your existing ISA funds to the FOLK2FOLK IFISA. 

Please note:

  • Waiting times: Your investment will be matched on a first-come-first-served basis bases via our lending queue.  There are no guarantees as to how long it will take to be matched to a loan. Waiting times vary depending upon Borrower and Lender demand at the time.
  • Interest: while your funds are not invested in a loan they will not be earning bank or loan interest. 


For further information about lending via the FOLK2FOLK platform and our IFISA, download our Lender Guide.​ For full details please refer to our Terms & Conditions




Latest News

Customer Stories

  • Richard's Story - Borrower

    "Sharp & Tappin is a precision engineering company and has been going for 11 years. The business has two parts: one is onboard cameras for ships and the other is composite blade saws...
  • Jim’s Story - Lender

    "I started my working life as a pilot in the Royal Air Force and after a 10 year commission I went to work in a building society which had a business arrangement with Parnalls solicitors who...
  • Pam's Story - Borrower

    "In 2009, I, together with my husband Robert and daughter Robyn, bought a pub which I had previously owned with my husband and sister in law and brother in law and sold in 2001. Since then it...
  • Nick's Story - Borrower

    Originally I was a farmer, but after Foot and Mouth affected us we had to diversify and Folk2Folk have enabled me to do this.  

    I have borrowed money through Folk2Folk since they began and...
SSL Certificates