MANY UK nationals living part of the year in Spain, or visiting often, might spend months here but still retain tax residency in their home country.
This means those looking for investment opportunities can still take advantage of UK tax efficient products such as Finance ISAs – ones which use peer-to-peer lending to offer high rates of return. They may be nothing new but one legal justice firm has upped the ante offering returns of up to 8 per cent a year.
Created two years ago, Innovative Finance ISAs allowsavers to use part of their ISA allowance to invest in peer-to-peer lending platforms while benefitting from potentially high interest rates tax free.
One firm, Just, is now claiming it will use investments to fund legal cases, with investors making profits if a case wins.
Just’s director, Rob Rutter, explained, “investors will ultimately be assisting those who may have been wronged by banks, institutions or individuals.”
Minimum investment is £2000 (€2244), which will be held in bond for five years accruing simple interest at 8 per cent per year.This could mean profits of up to £4000 (€4488) on an initial £10,000 (€1122) investment.
Experts warn these ISAs are not risk free, however, and are not covered by the Financial Services Compensation Scheme, meaning if such a firm was to go bust savers would likely lose their investments. Website thisismoney instead urges potential investors to, “do their own research into how solid the company they are investing in is.”