Shojin Property Partners has launched an Innovative Finance ISA (IFISA), which allows individuals to invest in property projects through an online platform and receive tax-free returns.
The IFISA is another type of ISA which sits alongside the traditional cash and stocks & shares ISAs. It enables investors and savers to make investments via crowdfunding platforms.
Investing through IFISAs is a way of strategically diversifying an investment, or savings portfolio and taking advantage of tax incentives, which helps grow savings. Investors can transfer any existing ISAs and invest up to GBP20,000 in the 2017/2018 tax year into Shojin Property Partners’ investments.
Shojin Property Partners has a wide variety of IFISA eligible projects spanning the entire property funding structure, as well as hands-off, buy-to-let investments. Investment in Shojin IFISAs is on a project by project basis, therefore, returns depend upon the project invested in.
Jatin Ondhia, CEO of Shojin Property Partners, says: “IFISAs are great because they encourage investors to spread their savings across a variety of different asset classes and sectors. Given the tax incentives and a wider choice of investment possibilities, it is surprising that over the last year savers either didn’t utilise their full allowance, or have invested in a cash ISA which has lost money in real terms when you factor in inflation.
“We are making it our initiative to educate the market that there are alternatives beyond basic Cash ISAs out there. There are opportunities across a variety of sectors, such as the property market and it is very easy to switch. Investors should not only look to take advantage of the tax benefits, but also look to maximise their returns and to diversify their portfolios.
“Investors have until 5 of April 2018 to use their GBP20,000 ISA allowance before the tax year ends. Unfortunately, one can’t roll over any unused allowance, so if you don’t act before the deadline it is lost forever.
“It is possible to put your whole allowance into a particular type of ISA, or you can split it between the different types of ISAs – cash, stocks & shares, lifetime and innovative finance. Investors can also transfer their existing ISAs that they already have from previous tax years.
“It is advisable for investors to investigate the fees involved when opening any new ISA, as set-up or management fees could be applicable. With Shojin it is completely free to open an Innovative Finance ISA. Whether you are transferring or topping up, the process is straightforward and quick.”