13 September 2021
In the March 2015 Budget the government announced a new ISA savings scheme to help first time buyers (FTBs) save for a deposit to purchase their first new home. Under this scheme a FTB c. There is no minimum monthly requirement.
The government will add a bonus of 25% to the FTB’s savings (and any interest earned on those savings) on the purchase of a first home. The bonus is subject to a maximum of £3,000. So if you are a FTB and you save £12,000 the government will pay you a bonus of £3,000.
Accounts are limited to one per person rather than per home so joint buyers can each open Help to Buy ISA accounts.
The accounts will operate in the same way as existing ISAs, with interest accruing on a tax free basis, but will include some special features which are summarised in the document produced by the government.
The Help to Buy ISA accounts will be available from autumn this year and will be available for four years. Once opened there is no limit on the length of time the ISA is used.
A FTB can make an initial deposit of £1,000 when opening the account to allow FTBs to start saving before the accounts are introduced.