Make tax efficient investing your resolution for 2025

Risk summary for investments in speculative illiquid securities which are arranged by a firm by way of an online platform.

Estimated reading time: 2 min

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be very complex and high risk.

What are the key risks?

You could lose all the money you invest
- By investing into a real estate project through Shojin you will be investing in a Bond instrument issued by Special Purpose Vehicles (SPV’s) which provide a funding facility for the purpose of real estate development. If the project fails, Investors can lose some or all of the money they invested.
- Advertised rates of return aren’t guaranteed. This is not a savings account. If the project doesn’t pay the SPV back as agreed, you could earn less money than expected or nothing at all. A higher advertised rate of return means a higher project risk with an increased probability of losing your money.
- Due Diligence and project oversight is carried out by the platform on each Shojin project that you are investing into to assess how well they are expected to perform. However, you should always also do your own research before investing.
- These investments are sometimes held in an Innovative Finance ISA (IFISA). While any potential gains from your investment will be tax free, you can still lose all your money. An IFISA does not reduce the risk of the investment or protect you from losses.
You are unlikely to be protected if something goes wrong
- Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.
- Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
You are unlikely to get your money back quickly
- This type of property investment could face delays that can delay payments. These investments could also fail altogether and be unable to repay investors their money.
- You have the opportunity to sell your investment early through the secondary market but there is no guarantee you will be able to find someone willing to buy.
This is a complex investment
- This investment has a complex structure to ensure the interest of investors is protected. Investments are made into each designated project SPV and are ringfenced from other project SPV's to ensure full transparency of each investment made.
- You may wish to get financial advice to understand how the structure works before deciding to invest.
Don’t put all your eggs in one basket
- Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
- A good rule of thumb is not to invest more than 10% of your money in high-risk investments.

If you are interested in learning more about how to protect yourself, visit the FCA’s website here.

For further information about minibonds, visit the FCA’s website here.

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As we enter 2025, optimizing your investments for tax efficiency should be a top financial priority.

Here's how to maximize your returns within the UK tax framework.

ISAs: Your first line of defence

The ISA allowance of £20,000 per tax year remains one of the most powerful tax-efficient investment vehicles. Through Innovative Finance ISAs (IFISAs), you can invest in property-backed opportunities with Shojin while enjoying tax-free returns.

>> Learn more about IFISAs

Property investment tax efficiency

Property investment platforms like Shojin offer tax-efficient routes through IFISA-eligible investments and SIPP-compatible opportunities. These structures help bypass traditional buy-to-let tax complications while maintaining exposure to property returns.

Build your pension pot through property lending

Changes in UK regulations have resulted in a relaxation of the rules around pensions - giving individuals more freedom to choose and manage their own investments. With this added flexibility you are able to diversify your pension funds with property investments through either SIPP (Self-Invested Personal Pension) or SSAS (Small Self-Administered Schemes) products.

>> Learn more about investing through a pension

Timing is everything

April 5th marks the end of the tax year. Planning your allowances early ensures you maximize available tax benefits and avoid rushing investment decisions. Take some time in January to plan your strategy for the next three months and beyond, and ensure you're utilising your full allowance across all available ISA products

Start your tax-efficient investment journey today.

Register on the Shojin platform to learn more about Shojin's IFISA property investment opportunities.

Published

08 January 2025

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