Launching in autumn 2015, the help-to-buy ISA is a tax-free way for first-time home buyers to save for their deposit with help from the government. Unveiled in the 2015 Budget, the government will top up the amount you save by 25%.
who’s it for?
The help-to-buy ISA is aimed at first-time buyers aged 16 years or older. Accounts will be limited to one per person, as opposed to one per property, so a couple would be able to open an account each.
what are the limits?
Once you’ve saved a minimum of £1,600 into your account, you’ll start accruing the 25% bonus. The minimum amount the government will pay is £400, and the maximum is £3,000 per person. It’s available on home purchases up to £250,000, increasing to £450,000 in London.
There are a few rules when applying for the help-to-buy ISA. You can’t purchase a property if you plan to rent it out. The property also has to be bought in the UK, so overseas purchases don’t qualify and you can’t open a help-to-buy ISA in the same tax year as a normal cash ISA.
If you’d like to know more, we’re here to help. Get in touch with us today on 01782 279615 or contact us here.