The Lifetime ISA, which can be used for first home OR retirement savings, is set to launch as planned on 6 April. For every £1 you save into the account, the Government will contribute another 25p and it’s all tax-free. The annual contribution limit is £4,000 which puts the maximum Government bonus available at £1,000 a year
Our firm is registered to claim for eligible purchasers the Help to Buy ISA, which launched in December 2015. This allows you to save up to £200 a month into the account (in addition to an opening £1,000) and earn interest tax-free. The Government will then top up your pot with a tax-free 25% bonus (maximum £3,000) when you complete on the purchase of your first home
For other savers in the Budget on 8 March 2017 it was announced that the long standing Cash and stocks and shares ISAs, will improve from this April as annual tax-free allowances rise to £20,000 from a current £15,240.
Meanwhile Help to Save, is still set to launch in April 2018 and will give lower-income savers who can stash away £50 a month, a tax-free bonus of up to £1,200
If you are thinking of purchasing your first home feel free to contact us for more information about the buying process and how we can help