Tax Consultant - Spofforths
George Osborne has announced that a new ISA is being created that will benefit first-time buyers of UK properties. The idea is that the 'help to buy ISA' will reward people who are required to save regularly in order to fulfil their desire to own their own home.
The scheme will look to provide a government bonus to each person who saves through this specific ISA. For every £200 a first time buyer saves the government will provide a £50 bonus up to a maximum of £3,000 on £12,000 of savings. Savers will be able to access this money for other purposes but the bonus will only be available for home purchases.
The new accounts are said to be available for four years but once the account is opened there is no limit on how long you can save for. These accounts will be made available through banks and building societies, as with other ISAs, from Autumn 2015. It will be possible to make an initial deposit of £1,000 when you open the account in additional to any normal monthly savings. It is important to note that the accounts are limited to one per person, rather than per home so if you are buying a property without someone else then you can each receive a bonus. It is only available however to individuals over 16 years old.
The bonus will be available on home purchases of up to £450,000 in London and up to £250,000 outside of London.
Download HMRC's factsheet here for more information on the first-time buyer ISA.
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