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IFISA Frequently Asked Questions

Published on April 13, 2017

1. How do I ‘subscribe’ new money to my Proplend ISA?

  • Register as a Proplend Lender and log into your Lender Dashboard
  • Submit the ‘Banking’ form telling us how much you’re going to be subscribing
  • Initiate the payment from your bank taking care to include your unique IFISA Lender ID as the payment reference.

2. What is the maximum (annual) ISA allowance?

The maximum allowance for ISA ‘Subscriptions’ for the current tax year (2017-18) is £20,000. This limit is subject to change each tax year.

3. What is the minimum investment to Proplend IFISA?

Proplend loans are split into £1,000 loan parts so you will need to subscribe and/or transfer at least £1,000 to your IFISA before you can invest.

For Proplend Loan Exchange investments (purchased after a loan is In Funding) you’ll also need to pay accrued interest for the month – this way you receive all the interest for your loan part(s) on the interest payment date. For investments to new platform loans there’s no accrued interest to pay.

4. How soon can I invest to loans after my money is received?

We’ll let you know as soon as your ISA subscription or transfer has been received. You can then hand-select the loan(s) you want to invest in.

5. How do I make an ISA transfer to Proplend?

You will need to complete our transfer in form (one for each transfer). Either complete the form before printing it out or print it out and then complete it – both approaches will require an original ‘wet’ signature to be provided when sending the form to us.

The transfer in form gives us authority to deal directly with your existing provider. We will send them your completed form with our acceptance and ask them to action the transfer as soon as possible. We’ll let you know when we have received the transfer payment and allocated it to your IFISA – you’ll then be ready to invest the transferred funds.

6. How do I transfer out?

You will need to complete the transfer form for your new ISA Manager (the receiving provider) detailing what you are transferring from our IFISA (i.e. a full or partial transfer of a specified ‘target’ amount). We can only transfer cash to your new provider, so you’ll need to sell some or all your Proplend loans (via the Proplend Loan Exchange) to free up the required amount for the transfer.

7. Can I track the progress of my transfer?

Once you have sent your transfer form to the receiving provider – they will deal directly with the transferring provider. Contact the receiving provider for updates on progress. The process is likely to take 2-4 weeks depending on the transferring ISA type – expect the process to take longer where existing investments have to be dis-invested first.

8. Is the Proplend IFISA flexible?

Yes – any money withdrawn from the ISA can be replaced before the end of the same tax year without being considered as new ISA subscriptions. You don’t have to return the whole amount or know how much you will be returning before the end of the tax year.

Any amount withdrawn that is not returned by the end of the tax year will be treated as a permanent withdrawal. The flexible amount available for withdrawal is reset at the beginning of each tax year. You can withdraw current and past year ISA funds flexibly from your Proplend IFISA.

9. What happens if I die? Do you provide Additional Permitted Subscriptions?

In the event of your passing away, we will close the ISA and send the proceeds to the appointed representative of your estate. We will provide the estate with a tax voucher equivalent that will explain exactly what is required of the estate. We do not currently offer Additional Permitted Subscriptions (APS), but may consider this in the future.

10. What happens if I leave the UK?

Contact us and we’ll talk you through the process. Leaving the UK may mean you lose your ISA allowance – it depends on your circumstances.

11. How many types of ISA can I hold?

You can hold ISAs of all types and split your annual subscription allowance between those different types. You can also hold ISA monies from previous tax years across the ISA types.

However, you can only subscribe new money to one ISA of each type per tax year. That is one Cash ISA receiving current year subscriptions, one Stocks and Shares ISA receiving current year subscriptions and one IFISA receiving current year subscriptions.

You can open more than one of each type if you’re using additional Cash ISAs, Stocks and Shares ISAs and IFISAs for past year ISA monies only.

12. How can I close my Proplend IFISA?

If you want to close your Proplend ISA, you’ll need to sell all current loan investments (via the Proplend Loan Exchange) and let us know what you want us to do with the balance. You can either request for it all to be transferred to another provider, withdraw it all (where it will no longer be considered ISA money) or withdraw some and request for the rest to be transferred.

Emptying your Proplend ISA is not the same as closing it, so you’ll need to specifically tell us that you’d like us to close it.

13. Do I need to sign up for a Proplend IFISA every tax year?

You only need to open one IFISA with Proplend. The same IFISA can hold different loan investments and ISA monies from past years and the current tax year. You will be required to agree to our Terms and Conditions when you first open a Proplend IFISA via your Lender Dashboard. We will let you know each time they change.

14. What information do you report annually about my IFISA?

We are required to report certain information about your ISA to HMRC each year. This includes the amount subscribed, a valuation of your holdings at the end of the tax year and some personal details. The process is entirely secure and your details are not compromised or shared with any other third parties.

15. Can I transfer in existing (non-ISA) loans into my IFISA

Unfortunately, ISA rules don’t allow non-ISA peer to peer loan investments to be transferred (‘in-specie’) into an IFISA.

16. Do you provide Junior ISAs?

No – unfortunately ISA regulations don’t permit P2P lending investments within Junior IFISAs.