Plan ahead for a first property.
The Help to Buy ISA gives first time homebuyers a maximum government bonus of £3,000 for those who save £12,000. Taxpayers who save up to £200 a month with a Help to Buy ISA will have their savings boosted by the government by 25% – every £200 saved will gain a £50 bonus. The limits apply to individuals, not to a couple. The Lifetime ISA introduced in April 2017 offers the same rewards, but with a higher investment limit. However, you will be able to transfer any savings in a Help to Buy ISA to a Lifetime ISA.
When you purchase your first home with the money saved in your ISA, the Government will add 25% tax-free to the savings and interest accrued.
There are two conditions to this;
- You must have at least £1,600 saved to release the bonus (equivalent to £400 extra).
- The most you’ll get the bonus on is £12,000 (equivalent to £3,000). If you’re savings are more than £12,000 you can still use the ISA to save, but £3,000 is the maximum bonus available.
Disclaimer:- The information contained herein is given by way of general guidance only and no action should be taken solely on the basis of the information contained herein. The Avanti Group (UK) Ltd will be pleased to provide further guidance on the issues, and how they might affect you. No liability is accepted by the firm for any action taken without seeking appropriate professional advice.