2018, the Year P2P Comes of Age?>
Analysts believe that 2018 will be the year Peer-to-peer (P2P) comes of age as the major platforms gear up to launch their new innovative finance ISA’s (IFISA) in the new year. According to data from research provider Intelligent Partnership, P2P consumer lending platforms are expecting “hundreds of millions of pounds on the back of the IFISA launch, eventually rising to billions in the long term” boosting lending volumes by a quarter.
Since the government first announced the tax-free shelter in the 2014 budget, the industry has been slow to roll out the IFISA. According to the FT, of the 61 providers that HM Revenue & Customs has so far authorised, less than half have launched a regulated product. HMRC data released in August shows that investors opened 2,000 IFISA accounts in the 2016/17 tax year, sheltering a total of £17 million in the tax wrapper.