IFISA Frequently Asked Questions
1. How do I open an IFISA with Proplend and ‘Subscribe’?
Proplend’s IFISA is now freely available to all customers having initially been launched to existing customers only. Visit www.Proplend.com and click on the ‘Register as Lender‘ or ‘Register Now‘ buttons on our homepage
Opening your Proplend ISA – 5-10 minutes
- Take a few minutes to register as a platform Lender.
- Click on the validation link in the registration confirmation email you’ll receive immediately after
- Validation will be confirmed and you’ll be taken to a login screen for your ‘Lender Dashboard’
- Once logged in you’ll be asked to provide some details for our automatic identity checks.
- When we’ve verified you, you’ll see a prominent ‘Open ISA Account’ button (towards the top right-hand corner of your Dashboard)
- Complete the ISA registration form and declaration – much of the information required will be prepopulated from your initial registration. Fill in any blanks and give us your National Insurance Number.
Subscribing to your Proplend IFISA:
- Click the ‘Banking’ tab from your ISA Dashboard
- Complete the web form to tell us which account your subscripton will be coming from (and where any withdrawals will be paid to)
- You’ll be taken to a screen telling you where to pay your subscription money – you’ll be prompted to tell us how much you’re going to subscribe
- Initiate the payment from your bank taking care to include your unique IFISA Lender ID as the payment reference in the format LENDxxxx-ISAxxx.
You can also fund your Proplend IFISA with transfers of existing ISAs – see 6. below for more information.
2. 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.
3. 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.
4. What is the minimum investment to Proplend IFISA?
Proplend loans are typically split into £1,000 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 interest for your loan part(s) on the interest payment date. There’s no accrued interest to pay where you invest from outset of a loan.
5. Can Proplend help me choose which loans to invest in or ‘auto-select’ loans for me
We try to give you as much information as we can about the loan, the borrower and the income producing property to help you make an informed decision but we are not authorised to offer investment advice.
All IFISA loan investments must currently be made on a self selection basis, although we expect to offer an auto-selection option in the not too distant future. Proplend pioneered the P2P lending Tranche model to help Lenders identify investments with risk-reward profiles they’re comfortable with – we cannot make specific recommendations.
6. How do I make an ISA ‘Transfer’ to Proplend?
Log into your Lender Dashboard and click the ‘Transfer ISA’ tab to access our transfer in forms. You’ll need to complete one for each transfer, either completing the form before printing it out or printing it out and then completing it. Both approaches will require an original ‘wet’ signature to be provided when sending the form to us.
We need to collect slightly different information depending on whether it’s a transfer from a Cash ISA, Stocks and Shares ISA or another IFISA so you’ll need to complete the relevant form for the transfer you’re requesting. 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 ISA account – you’ll then be ready to invest the transferred funds.
7. How do I transfer out of Proplend IFISA?
You will need to complete your new ISA Manager’s transfer in form and send it to them in the first instance. They will contact us directly to formally accept the transfer and initiate the process. Like any ISA provider, 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 funds for us to transfer.
You can choose to transfer some or all of your pot out of your Proplend IFISA.
8. Can I track the progress of my transfer?
Once you have sent your transfer form to the receiving ISA Manager – they will deal directly with the transferring ISA Manager. Contact the transferring provider for updates on progress and to ‘chase’ them if you think the process is taking longer than it should. The process should typically take 2-4 weeks depending on the transferring ISA type. Expect the process to take longer where existing holdings have to be sold first.
9. Is the Proplend IFISA flexible?
Yes – any money withdrawn from the ISA in a given tax year 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 simply be treated as a permanent withdrawal. You can withdraw current and past year ISA funds flexibly from your Proplend IFISA and the flexible amount available for withdrawal is reset at the beginning of each tax year.
Remember – your available balance is the amount you hold as cash not the total value of your ISA. You can increase the available balance by selling loan investments and it will naturally increase from time to time as loans are repaid. You can make loan investments available for purchase before the end of the loan term through the Proplend Loan Exchange.
10. Do I have to reclaim tax on my IFISA income?
We pay loan interest to you (gross) without deducting any tax. You don’t have to pay tax on ISA income so it avoids any reclaims being required. You don’t have to declare ISA (interest) income on an annual tax return either.
Proplend is not authorised to provide tax advice but we can point you in the right direction for more info. Visit HMRC’s ‘How ISAs work’ page.
11. 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. For more information visit HMRC’s ‘If you move abroad or die’ page.
12. What happens if I leave the UK?
Contact us and we’ll talk you through it. Leaving the UK may mean you lose your right to subscribe to ISAs – it depends on your circumstances.
13. 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 in a single tax year if you’re using additional Cash ISAs, Stocks and Shares ISAs and IFISAs to invest past year ISA monies only (by transferring funds from an existing ISA provider).
14. 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. If you have withdrawn funds from your Proplend IFISA and transferred funds to another ISA Manager before you returned all withdrawn funds, it may be possible to return the funds to us within the same tax year without this payment being considered as new subscriptions.
15. Do I need to ‘sign up’ for a Proplend IFISA every tax year?
No – you only need to open one IFISA with Proplend. The same IFISA can hold different loan investments and ISA monies from past and current years. 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.
16. What information do you report 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.
17. Can I transfer in existing (non-ISA) loans into my IFISA
Unfortunately not – ISA rules don’t allow non-ISA peer to peer loan investments to be transferred (‘in-specie’) into an IFISA. You can sell the loans and subscribe the proceeds into your ISA where it can buy other loan parts. A 0.5% fee is payable on the sale of loan parts (before the end of the term) through the Proplend Loan Exchange (PLE).
18. Do you provide Junior ISAs or Lifetime ISAs?