Innovative Finance ISA allowance?

• A. £10,000
• B. £15,000
• C. £25,000
• D. £20,000

Answer: (D)

The key idea is that the Innovative Finance ISA shares the same annual subscription limit as other ISAs. In a given tax year, you can invest up to a single ISA allowance across all ISA types, including the Innovative Finance ISA. That limit is £20,000. So the maximum you could put into an Innovative Finance ISA in one tax year is £20,000, and you could split this with other ISAs (for example, some into cash and some into the IFISA) as long as the total doesn’t exceed £20,000. The IFISA simply offers debt-based or peer-to-peer lending within an ISA wrapper, but it doesn’t increase the yearly allowance.