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Treasury closes in on allowing peer to peer lending in Isas

The Treasury is stepping up talks on allowing peer to peer lending through an Isa wrapper by setting up an industry working group, Money Marketing understands.

Department officials have held discussions with the industry over the group to examine any obstacles to widening choice in Isas.

The group paves the way for a possible Treasury consultation in the Budget on 19 March.

The move, tipped before last year’s Autumn Statement, would aim to boost funding for small business by incentivising savers to invest through tax relief.

Tisa is pushing for the move alongside the peer to peer lending industry.

The sector is set to be FCA-regulated along with crowdfunding from April, which could add to its credibility.

Last year, Isa savers were allowed to invest in Aim stocks for the first time.

A Treasury spokeswoman says: ”The peer to peer industry had made representations to Government in the past with regards to peer to peer loans and Isas, alongside other tax issues.

“The Government keeps all areas of tax policy under review and will continue to engage with the sector on this and other matters. These discussions remain at an early stage and it is too early to provide any further details.”

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. OMG! Why not just flush money down the loo? The banking system isn’t working and this isn’t really new. Banks only ever liked to lend against property. They were never really interested in business – and I can go back to the 1970’s.

    Perhaps if our banks followed the German model of interaction with business we might actually get somewhere. Meanwhile this latest wheeze from the Treasury looks like fertile ground for the FOS and FSCS. Any adviser who touches this needs to have his/her head examined.

  2. And who is going to fund the FSCS claims when it all goes horribly wrong?

  3. Why not put some Christmas clubs and my local rugby club 100 draw in as well

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