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IFISA Terms Conditions

IF-ISA TERMS AND CONDITIONS

  • Definitions and Interpretation
    • You must read and accept these Terms and Conditions in order to open your Innovative Finance ISA account with Kuflink. You must also agree to the terms of our Declaration Form.
    • Please note that these Terms and Conditions use a number of capitalised terms that are defined below, as well as in the glossary.
    • The following terms are defined for the purposes of these Terms and Conditions as follows:
      • HMRC refers to Her Majesty's Revenue & Customs;
      • IF-ISA refers to the type of ISA known as the Innovative Finance ISA, which is permitted under the ISA Regulations to invest (subject to conditions) in loans entered into via a platform operated by a person authorised and regulated by the FCA under article 36H of the Regulated Activities Order;
      • ISA means an Individual Savings Account, whose operation and promotion are governed by the ISA Regulations;
      • ISA Manager refers to the person who is charged with the duty to manage your ISA under the terms of these Terms and Conditions;
      • ISA Regulations means the Individual Savings Accounts Regulations 1998, as amended;
      • We, us, our or Kuflink all refer to Kuflink Limited, which operates the Platform and under these Terms and Conditions provides the service of ISA Manager.

2. Your Innovative Finance ISA account

  • Kuflink will be your ISA Manager.
  • Under these Terms and Conditions, your ISA will be classified and treated for all purposes as an IF-ISA.
  • To open an IF-ISA account, we must be in receipt of a completed ISA application, together with your payment for any amount between our stated minimum subscription up to the maximum annual subscription allowance for an IF-ISA. Note that if you have already contributed monies as an Advance to be held in the Client Money Account you may direct that these be used to fund your IF-ISA (up to the applicable statutory maximum level for ISA investment and taking into account all monies you have committed to ISA investment in the same fiscal year).
  • You may subscribe to an ISA in any UK fiscal year (i.e. period starting on 6 April of one year and ending 5 April of the following year) for which you are:
    • resident in the United Kingdom; or,
    • although non-resident in the United Kingdom, perform duties of a Crown employee which are treated as being performed in the United Kingdom; or,
    • the spouse or civil partner of a person to whom 2.4.2 applies;
    • minimum 18 years of age.
  • Your application for an IF-ISA account is specifically related and restricted to the UK fiscal year in which you make it. Kuflink will continue to manage your IF-ISA in successive years unless you opt out. We will require that you make certain representations to us concerning your tax residence etc., as detailed in these Terms and Conditions, which will be treated as holding true by Kuflink in successive years until and unless we are notified by you to the contrary.
  • In accordance with the ISA Regulations, you are not eligible to apply if you have already subscribed to an IF-ISA offered by a different ISA Manager, or have already subscribed the maximum available allowance to a Cash and/or Stocks and Shares ISA (as defined in the ISA Regulations), in the same UK fiscal year as you are applying for this ISA. These restrictions do not apply:
    • If you are transferring the entire value of an existing IF-ISA from another ISA Manager to this IF-ISA (in circumstances where this is permitted under the ISA Regulations); or,
    • Where you have already subscribed the maximum allowance to a Cash and/or Stocks and Shares ISA, and this is transferred to this IF-ISA.
  • The loans that you make on the Platform will be, and must remain in, your beneficial ownership and the value of your IF-ISA must not be used as security for a loan.
  • Any documents evidencing title to the loans you advance on the Platform and which become comprised within your IF-ISA will be retained by us under the terms of your IF-ISA Agreement.
  • We will notify you if, by reason of any failure on your part to satisfy the provisions of the ISA Regulations, your IF-ISA has ceased, or will, cease to qualify for relevant tax benefits or treatments to which it would otherwise be entitled. If the failure cannot be corrected or if you fail to take any action requested by us in writing within a reasonable period of time, we may close your account following written notice.
  • If you do not place any money in your IF-ISA account during a UK fiscal year, you will need to make a new Declaration should you wish to subscribe to your Kuflink IF-ISA in the following UK fiscal year.
  • In order to enter into an IF-ISA agreement, you will need to be eligible to invest with Kuflink subject to Part 1 Clause 5, provide Kuflink with your National Insurance Number and assure Kuflink of the provenance of your money. On the basis that you have complied with these requirements to Kuflink's satisfaction, no further such details are needed from you in relation to the opening of an IF-ISA account under these Terms and Conditions.
  • You must inform us immediately if any declarations or confirmations you have made about your eligibility to hold an ISA no longer apply.

3. Payments and Withdrawals

  • Subscriptions can be made into your IF-ISA account by directing monies which have already been advanced to your wallet into an IF-ISA investment.
  • An initial subscription must be at least £100.
  • All subscriptions must be in cleared Sterling funds drawn on a UK Bank or Building Society account bearing your name. 
  • The maximum you can subscribe to the Kuflink IF-ISA is the maximum ISA limit per tax year as prescribed in the ISA Regulations. Amounts subscribed in excess of this limit will not qualify towards your IF-ISA but will be invested into Auto-Invest for the same term. It is your personal responsibility to ensure that you do not exceed your ISA subscription limit for the tax year.
  • Please note that all subscriptions, subject to cancellation rights under Clause 4 are irrevocable.
  • Any interest accrued within your IF-ISA account will automatically be re-invested into the following year until maturity unless you opt-out. To opt-out, contact our Investor Relations team on hello@kuflink.com or call 01474 334 488.

4. Cancellation

  • If you wish you cancel your IF-ISA, you must be eligible to do so in line with Part 1 Clause 7.
  • If you are eligible to cancel your IF-ISA, you must notify Kuflink of this within 14 calendar days of the date on which we notify you that your IF-ISA account has been opened. You can do this by phoning us on 01474 334488 or emailing us on hello@Kuflink.com.
  • If you choose to cancel your IF-ISA within the 14-day cancellation period, you will remain eligible to open an IF-ISA with us in the future, or to do so with another ISA Manager. This will not impact your annual ISA allowance permitted by HMRC.

5. Account closure

  • If you wish to close your IF-ISA account, you can do so by phoning/emailing us at 01474 334 488 or hello@kuflink.com.
  • If you give instructions to close your IF-ISA account, and do not arrange with another ISA Manager to transfer the money in your account into the IF-ISA that they manage, you will not be able subscribe to another IF-ISA in the same UK fiscal year. However, you would have the choice to re-open your IF-ISA account with Kuflink in that same UK fiscal year if you wish.
  • We may close your account with immediate written notice to you if we are directed to close it by HMRC.
  • It is Kuflink's policy that monies which are transferred out of a closed IF-ISA account (unless required by law to be repaid to you or treated in some other fashion) will be retained as Advances made by you to Kuflink for the purposes of Loans under the terms of your IF-ISA Agreement.
  • In closing your IF-ISA we may deduct any sums due to us.
  • You will reimburse us any amounts owed to us if you close your ISA.

6. Death or Bankruptcy

  • Where the IF-ISA Investor dies on or after the 6 April 2018 the account will remain a continuing account of the deceased Investor until the earlier:
    • The completion of the administration of the deceased estate or;
    • The closure of the continuing account.

However, no further subscription can be made into the ISA.

  • When we receive notification of an Investor’s death we will freeze their IF-ISA account and unless we are required for any other reason to retain the funds against payments due to us or to transfer any part thereof to the estate, the funds standing to the credit of the IF-ISA will be treated as Advances to Kuflink for the purposes of Loans entered into under the IF-ISA Agreement (in relation to which the deceased Investor’s executors or administrators, on proof of grant of representation, will be treated as Kuflink's lending clients).
  • We may require a grant of representation before releasing any monies in the deceased Investor’ account to the executors.
  • The IF-ISA account will be valued for probate as at the date of death and dealt with as instructed by the deceased’s personal representatives.
  • We may support the setting up of an IF-ISA based on Additional Permitted Subscriptions (APS) for the deceased’s surviving spouse or civil partner.
  • In the event of bankruptcy, ISA tax exemptions will no longer apply from the date on which a trustee is appointed to manage the estate.
  • When we receive notification of bankruptcy we will close the IF-ISA account and unless we are required for any other reason to retain the funds against payments due to us or to transfer any part thereof to the deceased’s trustee in bankruptcy, the funds standing to the credit of the IF-ISA will be treated as Advances to Kuflink for the purposes of Loans entered into under the IF-ISA Agreement (in relation to which the deceased’s trustee in bankruptcy, on proof of valid appointment, will be treated as Kuflink's lending client).
  • Kuflink reserves the right to make an administrative charge (currently at the rate of £25 but subject to periodic review), deductible from the IF-ISA account, if required:
    • To register a grant of representation for the estate;
    • To register a trusteeship in bankruptcy; or
    • In relation to setting up an APS for a surviving spouse or civil partner.

7. Transfers in

  • You may transfer money into your IF-ISA with us from an existing ISA with another provider. An online transfer-in form will need to be completed and then downloaded from the platform for you to approve and sign. Once you return the signed Transfer Authority Form to our office, we can then arrange for the funds to be transferred to us from your existing ISA provider in accordance with your instructions and ISA Regulations.
  • The transfer process will begin on the date on the Transfer Authority Form or the date you stipulate for us to begin the transfer process, whichever is later. We will then send your request for the transfer of money in your existing ISA to your existing ISA Provider together with confirmation that we will accept the ISA transfer, within 5 business days of receiving your Transfer Authority Form.
  • You will not be charged by us for a transfer in of an ISA from a third-party ISA manager.
  • Funds that you have Advanced to Kuflink can be transferred into your IF-ISA account as long as they are not currently invested in a Loan.

8. Transfers out

  • You cannot liquidate Loans within an IF-ISA to fund a transfer out.
  • If you choose to transfer out funds from your IF-ISA to another ISA provider, you will be charged a fee of £35.
  • You may transfer all (but not part only) of the money in your account in the current tax year, together with all or parts of any funds (together with interest) in your IF-ISA from previous tax years to another ISA Manager in accordance with the ISA Regulations and these conditions. You will need to contact your other ISA Manager in order to arrange a transfer and you can choose the date funds are transferred subject to us being allowed a reasonable period to implement that transfer. That reasonable period shall not exceed 30 Business Days and shall be consistent with the requirements of the ISA Regulations.

9. Term period

  • Your IF-ISA term will last for whichever term you choose, either 1, 3 or 5 years. There is no early exit for IF-ISA investments.
  • You will be notified by e-mail and/or phone when your IF-ISA is three months away from maturing.
  • You will be notified again by e-mail and/or phone when your IF-ISA is one month away from maturing.
  • If we cannot contact you and/or you do not take action by the date your IF-ISA investment matures, your capital and interest will be re-termed for one year on maturity automatically. The automatic re-term will be for one year. You can change from the default automatic re-term by contacting our Investor Relations team on 01474 334488 or e-mailing them at hello@kuflink.com.
  • You will have 30 calendar days from the day your IF-ISA term is re-newed to reverse the investment or modify it. Once 30 calendar days have lapsed, you will be tied in until the one year term matures.

10. ISA Regulations

  • The management of your ISA Account will be subject to the ISA Regulations. Any changes made by HMRC to the ISA Regulations that affect these terms will apply as soon as they come into effect.
  • We will inform you if your ISA Account has lost or will lose its tax exemption through any failure to comply with the ISA Regulations. If an investment which was previously allowed under the ISA Regulations ceases to be allowed, Kuflink will notify you and request your instruction to either sell the investment and reinvest the proceeds in the account or transfer it out of the account.
  • These Terms and Conditions are based on our understanding of current law and HMRCs practice as at June 2019. These may change in the future and the favourable tax treatment of ISAs may not be maintained.