Authorised & regulated by the Financial Conduct Authority.

Fixed Rate Bonds and ISAs
feefo rating


No, as an investment, our ISAs involve an element of risk to your capital. Repayment of capital invested in our ISAs, and the payment of interest on this investment, depends on the performance of loans made by London Capital & Finance Plc to various UK businesses. In the event that these borrowers default on the loans, investors may lose some or all of their investment. Investment in London Capital & Finance Plc’s ISAs is therefore speculative and involves a degree of risk.1.

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.

No, these bonds/ISAs are not protected under the FSCS as they do not meet the eligibility requirements.

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%, 8.0% and 8.95% per annum for the 2, 3 and 5 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.

LC&F 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 a debenture, which includes the charge held by LC&F over its borrowers, in the interest of the bondholders, 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 4 ISA)
5 Years
(Series 3 ISA)
Interest Paid Every 6 months Quarterly Annually

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

The minimum starting investment is £5,000, with no upper limit. Investments must be made in multiples of £100.

The directors believe that an investment in the 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
  • Who 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 LC&F ISA pays a fixed interest amount.

The bonds are suitable for Self-Invested Personal Pensions (SIPPs) subject to approval by the scheme trustees and administrators.

LC&F 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.

Two bond issues are now full and have closed.
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, call 0800 410 1155 to speak to one of our dedicated team of account managers who can assist with your application. We also offer ISA bonds, which are tax-free under HMRC rules. Find out more.

All payments of interest made by LC&F are subject to the deduction of 20% withholding tax. LC&F is required by law to deduct withholding tax at 20% and pay its investors the net proceeds of the bond.

As an example, if an interest payment of £1000 is due, then £800 will be paid to the investor and £200 will be payable to HMRC, by LC&F, on behalf of the investor.

The deduction of withholding tax is subject to any lawful and customary exceptions and is dependent on an individual investor’s own taxation status.

If your bond is one of our ISA bonds, then your payments are made without the 20% deduction.

LC&F has sought guidance from HMRC who confirmed that LC&F is obligated to deduct 20% withholding tax and instruct its investors to claim any relief due to them directly from HMRC via their tax return.

Whilst LC&F 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.


London Capital & Finance Plc(“LC&F”) offer bonds with fixed interest rates and are asset-backed for security. A detailed presentation of each bond offered can be found in the respective Information Memorandum, which has been approved for promotion for the purposes of section 21 of the Financial Services and Markets Act 2000 (“FSMA”) by London Capital & Finance Plc (“LC&F") of The Old Coach House, Eridge Park, Eridge Green, Tunbridge Wells, Kent. TN3 9JS. LC&F is authorised and regulated by the Financial Conduct Authority with FRN 722603. This website is not intended to be a source of advice or credit analysis and the information contained herein does not constitute investment advice. Therefore, any decision in connection with funds, instruments or transactions described or mentioned within this website must be made solely on the information contained in the relevant Information Memorandum and no reliance should be placed on any other representations. Investors should note that repayment of the bonds offered by London Capital & Finance Plc, and the payment of interest on the bonds, depends on the performance of loans made by London Capital & Finance Plc to various UK businesses. In the event that these borrowers default on the loans, investors may lose some or all of their investment. Investment in the bonds of London Capital & Finance Plc is therefore speculative and involves a degree of risk.

Our investments have fixed annual interest rates of 6.5%, 8% and 8.95%, over 2, 3 and 5 years respectively. Calculate your returns

We use the funds from these products to help businesses plug the significant short-fall in the availability of corporate funding, by making loans to carefully selected UK companies. Find out more

Qualifying companies must demonstrate their ability to meet their loan commitments and provide assets as security which are worth more than the amount of the loan. Currently we hold £685.3 million assets protecting £215 million in loans1. Find out more

As at 31 August 2018, we have a 100% record in repaying our investors their interest and capital in full, and none of our borrowers have defaulted on their loans5.