UK-based peer-to-peer (P2P) lending platform LandlordInvest has secured ISA manager approval from HM Revenue and Customs (HMRC)

The approval will allow the P2P lender to offer a property-backed Innovative Finance Individual Savings Account (IFISA).

LandlordInvest CEO Filip Karadaghi said: We believe that our IFISA will be sought after given the low rates offered by cash ISAs, with an average rate of less than 1 per cent per annum, whilst our property-secured IFISA will provide investors with the possibility to earn up to 12 per cent per annum tax free.

“The ISA market is significant, around GBP500 billion, and we believe that the new IFISA that only became available this tax year, is a valuable addition to any well-diversified portfolio.”

The HMRC approval comes shortly after the P2P lender secured full authorisation from the Financial Conduct Authority (FCA). The firm, which offers buy-to-let and bridging loans, secured the authorisation following a 24-month application process.