You are probably already familiar with the traditional Individual Savings Account, or ISA, that allows you to save up to £20,000 TAX FREE for the 2017/2018 financial year.
ISA allowances are usually going up or remaining the same, so this is a great opportunity to grow a nest egg without paying any taxes.
Up until now, you had two options, the cash ISA, where you would usually get good interest rates for the first year, and then have to move it to another provider, and the stock and shares ISA.
In the context of tax free saving, it made more sense to get your stocks and shares away from the taxman, rather than a 1% saving account.
Now, a new category of ISA is available. It is called the Innovative Finance ISA, of IFISA, and allows you to put your peer-to-peer lending investments in a safe tax free scheme.
You can invest all of your 2017/2018 allowance into the IFISA, and you can also use the capital you have in cash or stock and shares ISA from previous tax years and transfer it into an IFISA.
Find out more about Innovative Finance ISAs with that infographic, courtesy of Lending Works.
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