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Frequently asked questions

The interest on our innovative finance ISAs is tax free. This means that, while you usually pay income tax on interest from other mini bonds, you don't pay any on our ISA bonds interest. You do not pay any additional personal income tax or capital gains tax on any money you earn from an innovative finance ISA. You don't need to declare any ISA interest as the ISA manager does this for you.

Your Tax treatment depends on individual circumstances and may be subject to change in the future.

No, all our ISA bonds have a fixed term and investors do not have the right to redeem all or part of their bonds prior to the maturity date.

Yes, subject to a suitability check, you can transfer any ISA between ISA providers without it affecting your yearly allowance. Once you submit an ISA transfer form to us we can initiate the transfer for you.

Yes, the current allowance allows you to invest a maximum of £20,000 per tax year. The tax year runs from the 6th of April to the following 5th of April.

We are required, by HMRC, to ask you for this as ISAs are tax efficient savings regulated by them. They use this to check you have only subscribed to the maximum of one of each ISA type per tax year and to check that you haven't oversubscribed.

London Capital & Finance Plc is a commercial lender that is seeking to help support UK businesses with the provision of credit whilst at the same time providing investors with an attractive return on their investment. Borrowing companies must provide adequate security and undergo a strict due diligence process. Profits from the lending fees and interest on the loans are used to pay investors their fixed return.

The returns are a fixed-rate of 6.5% and 8.0% per annum for the 2 and 3 year ISAs respectively as outlined in the brochures and Information Memoranda.

Yes. The returns are fixed for the duration of your investment period, there are no hidden fees or charges so you get a return for 100% of the money you invest.

Investors' funds are secured by a charge over the assets of LC&F and over the assets of borrowing companies. This security is held in trust for all investors by an independent Security Trustee, Global Security Trustees Ltd.

London Capital & Finance Plc is a successful corporate lending company. They lend money to companies who have undergone a strict due diligence process and can provide adequate security for the loan.

What is adequate security? When funds are lent out, a charge over either property and/or other assets of the borrowing company is taken at no more than 75% loan to value. So, for example: with a loan of £750,000, the value of the charged assets of the Borrowing Company would need to be at least £1 million.

LC&F has appointed an independent security trustee to hold a charge over LC&F by way of debenture, which includes the charge held by LC&F over its borrowers, in the interest of the bond holders, should LC&F not be able to meet its commitments.

The frequency of interest payments is dependent on the chosen investment term, the different options are highlighted in the below table.

Investment Term 2 Years
(Series 2 ISA)
3 Years
(Series 1 ISA)
Interest Paid Every 6 months Quarterly

Principal capital invested is repaid at the end of the selected term. Compound bonds pay interest and principal at maturity.

£5,000 is the starting minimum investment with multiples of £100 thereafter with no upper limit.

The directors believe that an investment in the ISA is suited to investors:
• Who want an above average return on invested funds
• Who want the security of a bond that is asset-backed
• Are looking for income over a choice of investment periods

Investors are purchasing UK corporate bonds which make fixed interest payments. The ISAs are managed by London Capital & Finance Plc.

No, the London Capital & Finance Plc ISA pays a fixed interest amount.

London Capital & Finance Plc will take no fees or make any deductions or charges of any kind on the interest paid by the ISA.

No, the ISAs have a fixed term, are not transferable and investors do not have the right to redeem their ISAs prior to the Maturity Date.

There are currently other series of bonds available which are targeted to raise up to £50 million each.

Investors who have any questions can speak directly with the company, by following this link: contact us

Applications can be made online here . Alternatively our Investor Relations Team can answer any questions regarding the sign up process contact us

Whilst London Capital & Finance Plc is regulated by the FCA, the ISAs offered herein are structured as corporate loans to LC&F and are therefore not regulated by the FCA.