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61 Friar Gate Derby DE1 1DJ
Registered office: 61 Friar Gate, Derby, Derbyshire, DE1 1DJ T: 01332 202660
Adrian Mooy & Co is the trading name of Adrian Mooy & Co Ltd. Registered in England No. 05770414
Registered to carry out audit work by the Association of Chartered Certified Accountants - auditregister.org.uk 8011438
The government is being urged to delay the April 2017 launch of the Lifetime ISA after providers warned they will not be ready to offer the product on time.
A new Lifetime ISA introduces a new type of savings account for adults under the age of 40. Individuals will be able to contribute up to £4,000 per year and receive a 25% bonus from the government. Funds, including the government bonus, can be used to buy a first home at any time from 12 months after opening the account, and can be withdrawn from age 60 completely tax-free.
Further details of the new account, which is expected to be available from 2017, are as follows:
Any savings an individual puts into the account before their 50th birthday will receive an added 25% bonus from the government.
There is no maximum monthly contribution and up to £4,000 a year can be saved ISA.
The savings and bonus can be used towards a deposit on a first home worth up to £450,000.
Accounts are limited to one per person rather than one per home.
Where an individual already has a Help to Buy ISA they will be able to transfer those savings into the Lifetime ISA in 2017, or continue saving into both.
Where the funds are withdrawn at any time before the account holder is aged 60 they will lose the government bonus (and any interest or growth on this) and will also have to pay a 5% charge.
After the account holder's 60th birthday they will be able to take all the savings tax-free. The Treasury is expected to confirm full details in the autumn.