HNW Lending has been registered with HMRC as a manager of Individual Savings Accounts (“ISAs”) and has been approved as an ISA manager. These terms and conditions set out the terms on which each user of a HNW Lending ISA uses such services. These are in addition to our standard terms and conditions available at www.hnwlending.co.uk/lender_terms.php
An ISA is a scheme of investment managed in accordance with the ISA regulations by the ISA manager under terms agreed between the ISA manager and the investor.
1.1 Your ISA will be managed by HNW Lending and will be referred to in this document as a 'HNW Lending ISA'. It is an innovative finance individual savings account under the Individual Savings Account Regulations (1998) as amended or re-enacted from time to time.
1.2 Your HNW Lending ISA must be registered in your sole name and must remain in your sole beneficial ownership. ISA Investments must not be used as security for a loan (personal or otherwise)
1.3 To be eligible to apply for a HNW Lending ISA: (a) You must be 18 years of age or older; and (b) You must be a 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 you must be married to, or in a civil partnership with, a person who performs such duties.
1.4 You must inform HNW Lending if you cease to be resident in the United Kingdom for tax purposes.
1.5 The following definitions are used in these terms and conditions:
'Borrower' means the recipient of a HNW Lending Peer-to-Peer Loan
'HNW Lending' or 'we' or 'us' means HNW Lending Limited of 72 Charlotte Street, London W1T 4QQ, company registration number 08739427;
'HNW Peer-to-Peer Loan' means an arrangement between a Borrower and you, as the Lender, facilitated by HNW Lending;
'Platform' means the platform operated by HNW Lending for the purpose of facilitating Loans between Lenders and Borrowers;
'Tax Year' means a year beginning on 6 April and ending on the following 5 April.
2.1 Your application for a HNW Lending ISA must be made electronically on the Platform, or in writing and must be made using the HNW Lending ISA application form. You must make a minimum subscription of £10,000 to the HNW Lending ISA. All applications are subject to acceptance by HNW Lending.
2.2 Any application covers the current Tax Year and successive Tax Years in which you make Subscriptions. If you fail to make any Subscription in any Tax Year, we will require you to complete a further application before you can resume Subscriptions in following Tax Years.
2.3 We may require you to provide additional information for the purposes of opening the HNW Lending ISA.
2.4 You hereby irrevocably authorise us to transfer your money to the relevant Borrower's account at the relevant time pursuant to a HNW Peer-to-Peer Loan.
2.5 Where accepted, the HNW Lending ISA will be registered in your name and in the name of HNW Lending as the manager of your HNW Lending ISA. It will have a unique account number and the address will be your address as set out on your application form.
2.6 HNW Lending will notify you by email or letter once your HNW Lending ISA has been opened.
2.7 Documents evidencing title to ISA investments will be held by the HNW Lending or as the HNW Lending may direct. HNW Lending will satisfy itself that any person to whom we delegate any of our functions or responsibilities under the terms agreed is competent to carry out those functions and responsibilities. HNW Lending will notify you if, by reason of any failure to satisfy the provisions of the ISA regulations, an ISA has, or will, become void.
3. SUBSCRIPTIONS AND INVESTMENTS
3.1 A HNW Lending ISA may hold HNW Peer-to-Peer Loans entered into on the Platform and cash only.
3.2 The maximum amount that you can subscribe or invest in a HNW Lending ISA in the 2018/2019 Tax Year is £20,000. You cannot subscribe or invest in more than one HNW Lending ISA in any Tax Year.
3.3 The HNW Lending ISA is a flexible ISA and as such, after a withdrawal in accordance with clause 4 below has been made, any subsequent subscriptions made in the same Tax Year may be treated as a replacement without counting towards your subscription limit for the Tax Year.
3.4 Cash will be held in a segregated client money account. Cash balances will not accrue interest.
3.5 You may be entitled to an additional allowance in the form of an additional permitted subscription if your spouse or civil partner dies and is an ISA holder. You can apply to make an additional permitted subscription upon completion and return of the relevant application but this must not exceed the value (capital balance plus any accrued interest) of the spouse or civil partner's ISA at the date of death and the application must be made within the specific time limits specified in the Individual Savings Account Regulations (1998) as amended or re-enacted from time to time.
3.6 It is your responsibility to comply with the restrictions set out in this clause and in the Individual Savings Account Regulations (1998) as amended or re-enacted from time to time. Any costs and charges incurred by HNW Lending if you do not comply with these terms shall be reimbursed by you.
4.1 You may instruct us, in writing, to make a withdrawal of cash or any investment held within your HNW Lending ISA and we shall make payment to you within 7 days of your instruction
4.2 The withdrawal must consist of the cash initially subscribed or invested in the HNW Lending ISA, and/or the income or interest received in respect to your HNW Peer-to-Peer Loans, but you have no withdrawal rights in relation to the money still in loans that have not yet repaid.
4.3 On the instructions of the investor and within the time stipulated by the investor, all or part of the investments held in the ISA and proceeds arising from those investments shall be transferred or paid to the investor. Withdrawal rights in relation to non-cash innovative finance ISA investments are available only as set out in the terms and conditions of the account.
5. TRANSFERS IN
5.1 We may accept a transfer of an existing cash ISA of which the balance must be at least £10,000.
5.2 If you transfer more than one ISA from previous Tax Years we will place all previous Tax Years cash holdings in an account with the Client Money Custodian and each transfer will therefore be indistinguishable.
6. TRANSFERS OUT
6.1 If we receive instructions in writing, we will transfer out your HNW Lending ISA to another ISA manager in accordance with the Individual Savings Account Regulations (1998) as amended or re-enacted from time to time and these terms.
6.2 In the event that you instruct us to transfer your HNW Lending ISA, all of the current Tax Year subscriptions must be transferred. Subscriptions for previous Tax Years can be transferred in whole or part.
6.3 Your HNW Lending ISA cannot be transferred in whole to another ISA manager in respect of current Tax Year subscriptions where there are non-cash investments (ie HNW Peer-to-Peer Loans that have not repaid) held within it. Current Tax Year subscriptions can only be transferred if these are in cash.
6.4 In accordance with the ISA regulations relating to transfers, you may transfer part or the whole of current and / or previous Tax Year’s subscriptions contained in your HNW Lending ISA to another ISA manager but only where these are cash investments. HNW Peer-to-Peer Loans that have not repaid contained in a HNW Lending ISA cannot be transferred.
6.5 We will arrange a transfer within 30 days of receiving the written instruction to do so, less a £75 administration charge. We will also provide the new ISA manager with the Net Subscription Amount, ie the total subscription amount for the current Tax Year minus any withdrawals. If the amount withdrawn is more than the total subscription amount, the Net Subscription Amount shall be £0.
7.1 You may close your HNW Lending ISA at any time by giving us written notice.
7.2 HNW Lending will take immediate action to close your HNW Lending ISA on being informed of (a) your bankruptcy (from the date of appointment of the trustee in bankruptcy) or (b) your death. In the event of your death, we shall take instructions from your personal representatives.
7.3 We reserve the right to close your ISA if we reasonably consider that it is necessary to do so or if it is in breach of Individual Savings Account Regulations (1998) as amended or re-enacted from time to time.
7.4 In the circumstances outlined in 7.2 and 7.3 above, you may lose some or all of your tax exemption and we may be obliged to make a report to HMRC.
7.5 If your HNW Lending ISA is closed (for whatever reason), we will (as we reasonably consider appropriate in the circumstances):
(a) ensure that any remaining cash is transferred to you;
(b) take reasonable steps to assign any outstanding HNW Peer-to-Peer Loans held in the HNW Lending ISA. Please note that the consideration value in respect of any assignment agreed is likely to be less than the amount you initially invested in HNW Peer-to-Peer Loans.
7.6 Upon closure of the HNW Lending ISA, we may deduct any sums due to us, including any amount we reasonably consider to be due under clause 3.6 of these Terms.
7.7 You will reimburse us in respect of any amounts required to be paid in tax or otherwise if you close your HNW Lending ISA.
7.8 HNW Lending will notify you if, by reason of any failure to satisfy the provisions of the ISA regulations, an ISA has, or will, become void. In these clauses 'the investor' means you.