The WiseAlpha High Yield IF ISA
Put your money to work in a WiseAlpha High Yield IFISA and earn tax free interest.
What is an Innovative Finance ISA?
Unlike traditional Cash ISAs and Stocks and Shares ISAs, an IFISA allows investors to participate in alternative investments, such as WiseAlpha Fractional Bonds, whilst earning tax-free returns - an attractive prospect for those who may have already maximised their personal savings allowance for the year (£1,000 for basic tax payers, and £500 for higher-rate tax payers).
An IFISA does not reduce the risk of the investment or protect you from losses, so you can still lose all your money. It only means that any potential gains from your investment will be tax free.
Frequently Asked Questions
Email our investing team if you have any unanswered questions.
How does the Innovative Finance ISA work?
This is a new category of ISA that sits between a traditional Cash ISA and a Stocks & Shares ISA. WiseAlpha Products are available in the IF ISA tax wrapper.
Who can create an Innovative Finance ISA?
To create and invest in our IF ISA an investor must: * be aged 18 or over; * be resident in the United Kingdom or, if not a resident, be performing duties as a Crown employee serving overseas and paid out of the public revenue of the United Kingdom (typically a serving member of the armed forces, or a diplomat), or be married to, or in a civil partnership with, such a person; * not have subscribed to another IF ISA in that tax year * be suitably qualified . These include high net worth, self-certified sophisticated, investment professionals and institutional investors
What are the tax rules on Innovative Finance ISA?
Investors do not have to declare income or gains from an ISA on their tax returns, unless the ISA subscription has been made void. Capital losses in respect of ISA investments are disregarded for the purposes of capital gains tax.
What happens if I pay too much into my IF ISA?
We prevent you investing more than the ISA allowance for each tax year. However, if you have more than one ISA provider, it’s up to you to make sure you don’t exceed the ISA allowance across all your accounts. If you do exceed that total, HM Revenue & Customs will tell you and your ISA provider about any action that needs to be taken.
Are there any fees or charges?
There are no set-up fees or charges. The only product specific fee is the transfer out fee of £50.
Is the rate of return guaranteed?
Investment carries risk and your capital may be at risk. WiseAlpha Products are different from bank deposits and they are not covered by the Financial Services Compensation Scheme (FSCS).
How can I fund my ISA?
You can do a bank transfer which typically take 2 business days. In addition, we support transfers in from other Cash, Stocks and Shares, and Innovative Finance ISA managers. Transfers from previous tax year ISAs do not deduct from this year's ISA allowance.
Can I open an ISA on behalf of someone else?
Only if you have a lasting power of attorney for the person you want to open the ISA for. If that’s the case, please email us at ifisa@wisealpha.com.
Can I get access to my funds early?
It may not be possible to access your capital before the end of the investment term, so you must be very certain that you will not require your money until the term expires. The only exception to this is in the event of the death of a investor where we may agree to a redemption or transfer.
Where is my money held?
Clients' uninvested cash balances are held at NatWest Bank plc in a segregated client bank account operated by WiseAlpha Technologies Limited, which is authorised and regulated by the FCA to hold client money.
Are you covered by the FSCS?
WiseAlpha Technologies Ltd is authorised and regulated by the Financial Conduct Authority (No.FRN: 751087 ).
As such, investors are treated as customers of WiseAlpha Technologies Limited and therefore have the potential to be compensated out of the Financial Services Compensation Scheme established and operated by the Financial Conduct Authority, in the event that WiseAlpha Technologies Limited should fail in the conduct of its FCA regulated activities.
However, investors will not be able to claim under the Financial Services Compensation Scheme merely because an investment purchased on the WiseAlpha platform loses money.
In the event that any WiseAlpha Product fails investors are not covered by the FSCS.
Details of the Financial Services Compensation Scheme may be found at www.fscs.org.uk.
What is the Innovative Finance ISA?
The IF ISA was introduced to beat the paltry investment returns currently available in the market. A major benefit of the IF ISA is that it is a tax-free wrapper that allows investment of up to £20,000 for the year. Please note that tax treatment depends on the individual circumstances of each investor and may be subject to change in future.
It is possible to split the £20,000 allowance across the different types of ISAs (the Lifetime ISA is subject to restrictions). You cannot open more than one new ISA in each class in each tax year. For example, only ONE cash ISA and ONE Stocks and Shares ISA, ONE Lifetime ISA and ONE Innovative Finance ISA can be opened in each tax year.
