What is an innovative finance ISA?
Answered 17 March 2026
Based on all the sources retrieved across multiple searches, the available materials do not contain a specific definition or explanation of an Innovative Finance ISA (IFISA).
The sources retrieved cover ISAs generally — including cash ISAs, stocks and shares ISAs, Lifetime ISAs, Junior ISAs, and the historical insurance component — but none of the retrieved documents specifically define or describe the Innovative Finance ISA as a distinct ISA type.
I could not find an authoritative source for the Innovative Finance ISA (IFISA) in the available materials. To find a full explanation, you may want to consult:
- The Individual Savings Account Regulations 1998 (SI 1998/1870), as amended (the IFISA was introduced by amendment in 2016), which set out the qualifying investments for an IFISA, including peer-to-peer loans and crowdfunding debentures.
- HMRC's ISA Managers' Guidance published on GOV.UK, which contains detailed operational rules for all ISA types including the IFISA.
- HMRC's Savings and Investment Manual (SAIM), particularly the sections on peer-to-peer lending (SAIM12000), which covers related income tax treatment.
Citation sources
The separate insurance Individual Savings Account (ISA) was abolished on 5 April 2005. Since 6 April 2005, provided certain conditions are met, life insurance policies can be held within the stocks and shares ISA, or, since 6 April 2017, within the Lifetime ISA. There is detailed information on ISAs in the ‘ISA managers’ guidance’ published on gov.uk. Insurers can find the guidance useful to check if a life insurance policy can be included in an investor’s ISA. The ISA Regulations themselves are
This guidance sets out the rules on how to apply Income Tax Relief for irrecoverable loans that occur on Peer to Peer (P2P) Investments under Chapter 1A of Part 8 Income Tax Act 2007. This tax relief was brought in at Section 32 Finance Act 2016. This tax relief allows P2P loans that become irrecoverable to be relieved by the lender against interest that they receive from other P2P loans. P2P lending is an area of Financial Technology that enables individuals and businesses to lend to each other