Government To Consult On New Peer-to-Peer Lending ISA

The government is considering setting up a separate tax free individual savings account (ISA) for people who want to lend out money.

The new ISA would be for people who lend money via Peer-to-Peer (P2P) borrowing sites.

It would be in addition to the two longstanding ISAs for cash and shares.

Peer-to-peer websites, like Zopa and Rate Setter, accept money from savers which they then lend out to individuals or businesses.

Often they attract an above-average return, albeit with more risk. Lenders can, in theory, lose their money, if the borrower is unable to pay it back.

The idea has snowballed: £1.8bn has been loaned through such sites so far, and the industry believes including such lending within ISAs will boost it further.

Source: www.bbc.co.uk/business

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