At the beginning of this year the British Treasury announced that from 2016 P2P lending will be included in the ISAs scheme, thus allowing to shield from taxes up to £1000 in interests received from borrowers. A few days ago the HM Revenue & Customs (HMRC), the UK Tax Authority, expanded the ISAs scheme also to peer-to-peer investment trusts.
The UK is the first Country in Europe and in the world to implement a tax policy to foster investments through peer-to-peer and crowdfunding marketplaces. The alternative finance market in the United Kingdom is the largest in Europe, especially when looking at the peer-to-peer lending side.
It will be interesting to see next year, when the ISAs scheme will enter into effect, if this will have the expected results on the market and strong it will be its impact. European institutions, like the European Banking Authority and the European Securities Market Authority and the European Commision itself, expressed their positive opinion about digital investing and often cited as example the British case. While almost each country in the EU is finding its own way to help establish alternative finance markets, the Britons have indeed responded very quickly and in many cases with less protective measures.
Rigby, A. (2015). HMRC allows ISA access to peer-to-peer lending trusts. Investmentweek
Yoshimura, M. (2015).UK Tax Authority HM Revenue and Customs Opens Up ISAs To P2P Investment Trusts. Crowdfundinsider.
About the author - Irene Tordera
Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives.
During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem.