With the Government's new Help to Buy Isas now available to aid people on to the first rung of the property ladder. If you are saving to buy your first home, the new Help to Buy ISA could help you with a deposit to buy your first home. With interest rates at record lows your savings grow at a very low rate. While the UK house prices continue to rise in most regions, pushing the dream of home ownership ever further out of reach.save money into a Help to Buy: ISA and the government will boost your savings by 25%. So, for every £200 you save, receive a government bonus of £50. The maximum government bonus you can receive is £3,000.
A Help to Buy ISA will be available from a range of banks and building societies. The accounts are available to each first time buyer, not each household. This means that if you are planning to buy with your partner, for example, you could receive a government bonus of up to £6,000 towards your first home. You need to be aged 18 years or over, resident in the UK and only liable to pay tax in the UK and are not, and never have been, a Residential Property Owner to open an account.
You can make withdrawals at any time. However the bonus you will receive from the Government when you purchase your first home will depend on the balance when you close your account. You will not be able to claim a bonus on any previously withdrawn funds.
How long can the Isa run for? The scheme will be closed to new entrants from 30 November 2019 and the bonus must be claimed, through the purchase of a house, by 1 December 2030.
Save up to £200 a month into your Help to Buy ISA. or you can deposit a lump sum of up to £1,200. The minimum government bonus is £400, meaning that you need to have saved at least £1,600 into your Help to Buy ISA before you can claim your bonus. The maximum government bonus you can receive is £3,000 – to receive that, you need to have saved £12,000. When you close your Help to Buy ISA, we will provide you with closing documents to present to your chosen eligible conveyancer, and they will apply for your bonus. The bonus will be paid to the eligible conveyancer to be applied towards the acquisition of the property, provided that you have adhered to the scheme rules and terms and conditions..Please check whether your solicitor or conveyancer is participating the Help to Buy ISA scheme, as they will need to register with the scheme before they can apply for your bonus.
The favourable tax treatment depends on your Help to Buy ISA scheme and individual circumstances and may be subject to change in the future