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Peer-to-Peer Loans

Volume 586: debated on Friday 17 October 2014

To extend choice for savers the Government are consulting on the proposal to allow peer-to-peer loans to be included within ISAs, allowing earnings on interest to be entirely tax free.

The consultation “ISA qualifying investments: consultation on including peer-to- peer (P2P) loans” forms part of the Government’s wider drive to support savers by increasing the choice of investments available to ISA investors. It also supports the Government’s aim to diversify the different sources of finance that are available to borrowers by encouraging the growth of the peer-to-peer lending sector.

Following Budget 2014, the Government have informally consulted with interested parties, seeking their views on the best way to implement the inclusion of peer-to-peer loans within ISAs. This next stage of formal consultation aims to engage with a wider range of stakeholders and individuals involved in the investment industry.

The consultation seeks views on whether peer-to-peer loans should be included in existing stocks and shares ISAs, or whether they would be best suited to a new, third type of ISA. The Government also ask whether peer-to-peer loans should be subject to the same transfer requirements as existing ISA investments, and whether they are suitable assets to be held in child trust funds and junior ISAs. The consultation will run for eight weeks, closing on Friday 12 December 2014 and can be found at the following address: