Innovative Finance ISA Explained

Tax free returns

Benefit from tax free returns by using the CapitalRise Innovative Finance ISA when you invest in a CapitalRise opportunity. The ISA is quick, simple and free to set up online and opening one will guarantee you get priority access when we launch investment opportunities.

How to fund your ISA

There are two options for funding your CapitalRise ISA. The first is using this year’s allowance to invest up to £20,000. The second is to transfer funds from your existing ISAs to CapitalRise. There is no limit to the amount you can transfer and we will fully manage the process for you.

Investors should be aware that their capital is at risk. Tax treatment of ISAs is subject to change and depends on individual circumstances.

Benefits of an IFISA

The CapitalRise ISA allows you to receive tax free returns.

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Easy to set up

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Invest from £1,000

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Simple to transfer in

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Average returns 10% p.a.

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FAQS

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What is a CapitalRise ISA

The Innovative Finance ISA (IFISA) is an ISA that allows customers to earn tax free returns on investments they make. There are three types of ISAs available in the market, the Cash ISA, the Stocks and Shares ISA and the Innovative Finance ISA. You can use the IFISA to invest in CapitalRise opportunities and earn tax free returns.

Any investment into an ISA with us will function in the same way as any non-ISA investment does now, the only difference is your returns will be tax free. For example;

  1. If you have invested in a development opportunity your investment will be used to assist property developers complete their projects with your investment returned once the property has sold or the developer has refinanced.
  2. If you have invested in a bridging opportunity your investment will be used to assist the developer with acquisition of the property and your investment will be returned once the developer has refinanced or from sale of the property.
  3. If you have invested in a sales period opportunity your investment will be used to refinance the developers existing development loan and your investment will be returned once the property has sold.

The interest rate you receive will vary depending on the deals you choose to invest in. Investments that you can make using your ISA will typically have a rate of return between 8 - 12%.

Opening a CapitalRise ISA account

Once you are a member click here and provide your National Insurance number. There are two ways to fund your account when there is a live investment opportunity by using this year’s allowance or transferring existing ISAs. Even when there is no live opportunity, you can still open a CapitalRise ISA and receive priority access to all upcoming investment opportunities and be able to fund your ISA faster.

You can subscribe to one ISA from each of the ISA categories. The categories are cash, stocks & shares and innovative finance. You can have one of each ISA as long as the total amount subscribed does not exceed the annual subscription limit of £20,000. There is no limit on how many ISAs you can transfer over from previous tax years.

No, it is free to open an IFISA with us.

There is a fee of £35 for transferring out to another provider. In the event of bankruptcy or death of an investor there are additional fees which are detailed in the ISA terms and conditions. These fees are to cover the administration costs associated with these events.

Only members can open a IFISA account. Once you are a member you will need your National Insurance number.

Customers need to be 18 years old and a UK resident to open an IFISA.

You can open ISAs with multiple providers however you can only deposit money into one IFISA provider in the tax year.

Funding a CapitalRise ISA

You can invest up to £20,000 into your ISA in the current tax year. There is no limit to how much you can invest if you are transferring an existing ISA from another provider.

Once you have nominated your investment amount in a live investment opportunity you will receive an email advising of the bank account to transfer your funds.

The minimum investment is £1000.

No, we will do this on your behalf. Don't forget there is no tax payable on any earnings you generate from your IFISA.

Once you have opened an CapitalRise ISA account we will make sure that you get to review our upcoming investment opportunities before our public launch so you do not miss out!

Once you have invested in a CapitalRise project using your ISA you will be sent an email with the bank account details of where to transfer your funds.

No, you have to be at least 18 years old to invest on our platform as such you cannot invest using a Junior ISA

Transferring an existing ISA

Yes, members can transfer in ISAs. Once you have invested in a CapitalRise opportunity you will be asked a couple of questions about your existing ISA account and contact details of your existing ISA provider, the process generally only takes a couple of minutes. A form is pre-populated which you then sign and send, we then take care of the rest and in most cases your investment will be live within 15-20 working days.

Once we have received your signed form via the post your CapitalRise ISA will be live within 15-20 working days.

Yes, we can accept partial transfers. Please note some ISA providers may have not allow you to transfer some of your existing ISA, if you are unsure just ask your ISA provider, or alternatively get in contact with us and we can try to find out on your behalf.

No, you will not lose your investment allocation. We understand that ISA transfers will take some time so we will hold your allocation until it has been funded from the transfer. We will continue to keep you updated throughout the entire process.

Managing my CapitalRise ISA

You can't withdraw funds that are currently invested in an opportunity but you can as soon as the investment comes to an end.

At the end of an investment opportunity you can:

  1. Reinvest your funds into another CapitalRise Investment Opportunity.
  2. If you invested in the same tax year you can invest your funds into another ISA as the CapitalRise ISA is flexible
  3. If you invested in another tax year you can transfer your ISA

All of these options will ensure that your funds do not lose their tax free status.

Yes, the CapitalRise ISA is Flexible, you can withdraw and reinvest within the same tax year and your funds will not lose their tax free status.

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