That means that from the next tax year, consumers could in future invest up to £15,000 via P2P lending platforms without having to pay tax on any gains
It is an announcement which has been received well by the peer-to-peer sector, with the consensus that the move signals a shift of P2P into a more mainstream position in the market.
Christine Farnish, Chair of the P2PFA, said:
“This is a great day for consumers who want a better deal from the financial services market. It shows that peer-to-peer lending is moving into the mainstream and is here to stay.”
Stuart Law, founder and CEO of Assetz Capital, commented:
"This is great news for investors – returns for higher rate taxpayers who use part of their ISA allowance for peer-to-peer lending will increase by as much as 91% thanks to the Government’s decision. Platforms such as Assetz Capital, which has an average return to date of 12.7% before taxes, will become even more attractive to investors.
"This, combined with FCA regulation due on 1 April 2014 shows that P2P lending has truly entered the mainstream, and will soon become a key part of the majority of investors’ portfolios. It will also increase lending to British SMEs and property developers, giving the productive economy a further boost.”
Rhydian Lewis, founder and CEO of RateSetter, said:
“This is an unprecedented opportunity to breathe fresh life into a failing sector, by expanding the horizons of a new and innovative one, and the Government has not disappointed. By including P2P platforms in NISAs, we will be able to give cash-strapped retirees and young people struggling to get on the property latter the help they need.
“We have found the NISA-ability of P2P will be most popular among pre- and post-retirees in search of much-needed income and savvy, urban young professionals looking to consolidate their future. Savings security should not be a concern with them if they place their cash with a reputable P2P player. Therefore, this marks a sea-change in the way people save money in the UK.”
