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IFISA Terms Conditions

Innovative Finance ISA Terms and Conditions

Please read your Innovative Finance ISA terms and conditions. You must accept these terms and conditions in order to open your Innovative Finance ISA account with Kuflink.

Please note that to open an Innovative Finance ISA Account with Kuflink, you must first also have agreed to the terms of our Participation Agreement.


1 Definitions and Interpretation

1.1 Please note that these Terms and Conditions uses a number of capitalized terms that are defined in the Participation Agreement, and these definitions apply here also.

1.2 The following further terms are defined for the purposes of these Terms and Conditions as follows:

1.2.1 HMRC refers to Her Majesty's Revenue & Customs
1.2.2 IF ISA refers to the species of ISA known as the Innovative Finance ISA, which are permitted under the ISA Regulations to invest (subject to conditions) in loans entered into via a platform operated by a person authorized and regulated by the FCA under article 36H of the Regulated Activities Order.
1.2.3 ISA means an Individual Savings Account, whose operation and promotion are governed by the ISA Regulations
1.2.4 ISA Manager refers to the person who is charged with the duty to manage your ISA under the terms of these Terms and Conditions.
1.2.5 ISA Regulations means the Individual Savings Accounts Regulations 1998, as amended.
1.2.6 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

2.1 Kuflink will be your ISA Manager.

2.2 Under these Terms and Conditions, your ISA will be classified and treated for all purposes as an IF ISA. Please note the further provisions of these Terms and Conditions that apply where, in any given fiscal year, youhold more than one ISA.

2.3 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 moneys as an Advance to be held in the Client Money Account you may direct thatthese be used to fund your IF ISA (up to the applicable statutory maximumlevel for ISA investment and taking into account all moneys you have committed to ISA investment in the same fiscal year).

2.4 You may subscribe to an ISA in any United Kingdom fiscal year (i.e. period starting on 6 April of one year and ending 5 April of the following year) for which you are:

2.4.1 resident in the United Kingdom, or
2.4.2 although non-resident in the United Kingdom, perform duties of a Crown employee which are treated as being performed in the United Kingdom, or
2.4.3 the spouse or civil partner of a person to whom 2.4.2 applies.
2.4.4 minimum 18 years of age.

2.5 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 via Kuflink’s platform. 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.

2.6 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 toa 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:

2.6.1 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
2.6.2 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.

2.7 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 assecurity for a loan.

2.8 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 Participation Agreement.

2.9 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, ceaseto 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 by written notice.

2.10 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.

2.11 In order to enter into a Participation Agreement, you will be required to provide Kuflink with various materials to prove your identify 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 suchdetails are needed from you in relation to the opening of an IF ISA accountunder these Terms and Conditions.

2.12 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

3.1 Subscriptions can be made into your IF ISA account by debit card or bank transfer, or by directing that moneys that you have already Advanced to Kuflink and which are comprised in the Client Money Accountshould be used for this purpose.

3.2 An initial subscription must be of at least £100.

3.3 All subscriptions must be in cleared Sterling funds drawn on a UK bankor building society account bearing your name.

3.4 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 such maximum will not qualify towards your IF ISA, but will be available as Advances to Kuflink for use in the funding of Loans made in accordance with your Participation Agreement.

3.5 Please note that all subscriptions, subject to cancellation rights under clause 4, are irrevocable.

3.6 You may make withdrawals from your IF ISA account in any circumstances under which you have the right to withdraw funds under the Participation Agreement. Broadly speaking you cannot withdraw any value from your IF ISA that at the material time is committed by Kuflink via the Participation Agreement to one or more Loans.

3.7 Any interest accrued within your IF ISA account will automatically be re-invested into the following year until maturity


4 Cancellation

4.1 Regardless of whether you have chosen to Advance money to Kuflink for the purposes of Loans entered into under your Participation Agreement, we are required to notify you that you have the right to cancel your application for an IF ISA under the terms of these Terms and Conditions.

4.2 If you wish 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/emailing/writing to us on 01474 334499 or ISA@Kuflink.com

4.3 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 on a future occasion, or to do so or another ISA Manager. This will not impact your annual allowance permitted by HMRC

4.4 Please note that cancellation of your IF ISA has no effect on the status of your Participation Agreement, which remains in force. Cancellation of your Participation Agreement in accordance with its terms will automatically serve as a cancellation of your IF ISA, if you have entered into one.

4.5 If you have committed to your IF ISA moneys that were already in the Kuflink Client Money Account, cancellation of your IF ISA serves to redirect such moneys for general use under the terms of your Participation Agreement. If you have forwarded moneys to Kuflink specifically to fund your IF ISA and then cancel it, we will arrange for such moneys to be refunded to you, minus a handling charge of a reasonable amount to represent Kuflink's costs of administering the cancellation process.


5 Account closure

5.1 If you wish to close your IF ISA account, you can do so by phoning/emailing/writing to us at 01474 334499 or ISA@Kuflink.co.uk

5.2 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, please note that 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.

5.3 We may close your account with immediate written notice to you if weare directed to close it by HM Revenue & Customs.

5.4 It is Kuflink's policy that moneys 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 Participation Agreement.

5.5 In closing your ISA we may deduct any sums due to us.

5.6 You will reimburse us any amounts required to be paid in tax or otherwise if you close your ISA.


6 Death or bankruptcy

6.1 Where the 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

6.2 When we receive notification of your death we will close your 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 your estate, the funds standing to the credit of your IF ISA will be treated as Advances to Kuflink for the purposes of Loans entered into under your Participation Agreement (in relation to which your executors or administrators, on proof of grant of representation, will be treated as Kuflink's lending clients).

6.3 We may require a grant of representation before releasing any moniesin your account to your executors.

6.4 Your IF ISA account will be valued for probate as at the date of your death and dealt with as instructed by your personal representatives.

6.5 We may support the setting up of an IF ISA based on Additional Permitted Subscriptions (APS) for your surviving spouse or civil partner.

6.6 In the event of your bankruptcy, ISA tax exemptions will no longer apply from the date on which a trustee is appointed to manage your estate.

6.7 When we receive notification of your bankruptcy we will close your 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 your trustee in bankruptcy, the funds standing to the credit of your IF ISA will be treated as Advances to Kuflink for the purposes of Loans entered into under your Participation Agreement (in relation to which your trustee in bankruptcy, on proof of valid appointment, will be treated as Kuflink's lending client).

6.8 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:

6.8.1 To register a grant of representation for your estate;
6.8.2 To register a trusteeship in bankruptcy; or
6.8.3 In relation to setting up an APS for a surviving spouse or civil partner.


7 Transfers in

7.1 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 we will send you a Transfer Authority form to approveand sign. 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.

7.2 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 ofreceiving your Transfer Authority form.

7.3 You will not be charged for a transfer in of an ISA from a third party ISA manager.

7.4 Funds that you have Advanced to Kuflink under your Participation Agreement can be transferred into your IF ISA account as long as they arenot currently invested in a Loan.


8 Transfers out

8.1 You cannot liquidate Loans within an IF ISA to fund a transfer out.

8.2 If you choose to transfer out funds from your IF ISA to another ISA provider, you will be chargeda fee of £35.

8.3 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 account from previous tax years to another ISA Manager in accordance with the ISA Regulations and these conditions. Youwill 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 Changes to Terms and Conditions

9.1 We may, at any time, amend these Terms and Conditions by giving you written notice. Such amendment will take effect on the date specified in the written notice. For the avoidance of doubt, these changes may impact our fees and charges, or the level of service provided. Any amendment that adversely affects you will not apply to sums already lent out.

9.2 Kuflink may amend these terms if it believes it necessary in order to respond proportionally to changes in law and regulations.

9.3 We may also amend the Terms and Conditions to reflect changes to our systems, administrative processes and procedures, market practice orclient requirements and to reflect other legitimate cost increases (or reductions) associated with providing your Kuflink Innovative Finance ISA9.4 You will be given at least 20 Business Days' notice in respect of any changes to these Terms and Conditions unless the specific circumstances require a shorter period. Any amendments will comply with any applicablelaws and regulations.


10 Term period

10.1 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.

10.2 You will be notified by e-mail when your IF ISA is three months and one month away from maturing

10.3 If you do not take action by the date your IF ISA investment matures,your matured IF ISA investment will automatically be re-termed for one year. You can change from the default automatic re-term by logging in to the Kuflink platform.


11 ISA Regulations

11.1 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.

11.2 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.

11.3 These Terms and Conditions are based on our understanding of current law and HMRCs practice as at April 2016. These may change in the future and the favourable tax treatment of ISAs may not be maintained.


12 General and Miscellaneous Provisions

12.1 These Terms and Conditions are personal to you and cannot be assigned or transferred.

12.2 Any obligation that we owe to you under these Terms and Conditions may be satisfied by any other company in our group, for whose acts or omissions we will remain fully liable to you.

12.3 In the event of any conflict between these Terms and Conditions and the Participation Agreement to which you are party, the latter prevails.

12.4 For the purposes of the Contracts (Rights of Third Parties Act) 1999, these Terms and Conditions confer no rights on any person other than the parties hereto.

12.5 These Terms and Conditions are governed by English law, and the courts of England have exclusive jurisdiction in relation to any matters, contractual or otherwise, arising out of them.

IF ISA Declaration May 2019

I apply to subscribe for an Innovative Finance ISA for the tax year 2019/2020 and each subsequent tax year until further notice.

I declare that

  • All subscriptions made, and to be made, belong to me
  • I am 18 years of age or over
  • I have not subscribed, and will not subscribe, more than the overall subscription limit in total to a cash ISA, a Stocks and Shares ISA, andan Innovative Finance ISA in the same tax year
  • I have not subscribed, and will not subscribe, to another Innovative Finance ISA in the same tax year that I subscribe to this Innovative Finance ISA, and
  • I am resident in the United Kingdom for tax purposes or, if not so resident, either perform duties which, by virtue of Section 28 of Income Tax (Earnings & Pensions) Act 2003 (Crown employees serving overseas), are treated as being performed in the United Kingdom, or I am married to, or in a civil partnership with, a person who performs such duties. I will inform Kuflink if I cease to be so resident or to perform such duties or be married to, or in a civil partnership with, a person who performs such duties
  • I have completed the application form to the best of my knowledge, belief and that the information provided is true and accurate
  • I agree for my funds and any other assets as described below to be held in an ISA which is managed by Kuflink Ltd (Kuflink); a firm authorised and regulated by the Financial Conduct Authority (724890).
  • I agree to the Investor and Innovative Finance ISA Terms and Conditions
  • I authorise Kuflink:
    • to hold my ISA investments and interest, and any other rightsor proceeds in respect of those investments
    • to make on my behalf any claims to relief from tax in respect of ISA investments

Please consider printing/saving this page for your records. A copy of this declaration will be available in your account page.