06Sep
2017
2017
Lifetime ISAs – A 25% bonus for 18-40 year-olds to help with house buying
David Flowers / 0 Comments /Lifetime ISAs – A 25% bonus for 18-40 year-olds to help with house buying
If you’re aged between 18 and 40 you can now build even more tax free savings. You can pay up to £4,000 into the new Lifetime ISAs in the current tax year (2017-2018), and the government will reward you with a 25% bonus of up £1,000. As long you keep the money until 60, or use it to buy your first house, all the growth achieved will be tax free. You can pay an additional £16,000 into either a Stocks and Shares or cash ISA too. In summary:
- Open to those aged 18-40;
- Pay in up to £4,000 in the current tax year and receive a government bonus of up to 25%;
- Access the money early for a deposit on your first house worth up to £450,000;
- Access the money tax free from age 60;
- Access the money early for any purpose with loss of growth, government bonus and a 5% penalty;
- You can transfer in Help to Buy ISAs;
- You can still invest an additional £16,000 into a Stocks and Shares or cash ISA.
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