You are in

Changes to ISAs

Changes to ISAs

1.  ISA rules changed from 6 April 2016 - additional flexibility
2.  Innovative finance ISAs have been available since 6 April 2016
3.  Lifetime ISAs from 6 April 2017

ISAs are Individual Savings Accounts where your interest is paid tax-free up to a set limit each tax year. The annual ISA limit for the 2018/19 tax year is £20,000. The best way to think of them is as wrappers you can use to shelter savings and investments from tax.

1. ISA rules – additional flexibility
The government has introduced a new optional feature on ISAs; additional flexibility may be offered from 6 April 2016.

Normally, any money you pay into your ISA counts towards your annual ISA allowance. With the additional flexibility you can replace withdrawals without the replacement counting towards your ISA allowance. You’ll need to pay the funds back in before the end of the tax year you take them out though.

Santander ISAs do not offer additional flexibility.

If your provider chooses to offer flexibility it will apply to both current tax year and previous tax year ISA subscriptions. If you’re not sure if your ISA has this feature please check with your provider.

For further information on additional ISA flexibility click here

2. Innovative Finance ISAs
The innovative finance ISA is a type of ISA to let savers shelter peer-to-peer lending in an ISA wrapper. (Peer-to-peer lending is when savers lend to borrowers, usually through a platform.)

Santander doesn’t offer peer–to-peer lending and therefore won’t be offering an innovative finance ISA.

3. Lifetime ISAs from 6 April 2017
As well as paying tax free interest, a Lifetime ISA pays a Government bonus.
Santander will not be offering Lifetime ISAs, instead we'll stay focused on products we already offer.

Frequently asked questions

Santander UK plc. Registered Office: 2 Triton Square, Regent's Place, London, NW1 3AN, United Kingdom. Registered Number 2294747. Registered in England and Wales. Telephone 0800 389 7000. Calls may be recorded or monitored. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our Financial Services Register number is 106054. You can check this on the Financial Services Register by visiting the FCA’s website Santander and the flame logo are registered trademarks.