Government consults on launch of P2P ISAs

The government is proposing to launch a third kind of individual savings account (ISA) that encompasses peer-to-peer (P2P) loans.

A consultation opened today suggests a third kind of ISA - separate from the cash and stocks & shares tax-free products - is the best way to accommodate the government's desire to encourage the P2P market. Over £1.5bn has been lent via P2P websites, which provide a platform for consumers to loan money directly to individual or business borrowers, in recent years. Chancellor George Osborne (pictured) announced in the Budget this March that the loans would qualify for ISA inclusion in future, thereby making the interest received tax free, but questions remained over implementation. W...