An innovative finance ISA is a type of ISA that adds a tax-free wrapper to income from peer-to-peer lending. Individuals can hold Peer to Peer (P2P) loans free of tax on interest and capital gains.
Every UK adult is permitted to invest up to £20,000 tax-free in an ISA in 2025/26. It is possible to split this allowance across all the different types of ISAs.
Cash ISA, Stocks and Shares ISA, Lifetime ISA, Junior ISA, and Innovative Finance ISA.
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