Life­time ISA is now on of­fer

The Oban Times - - Busi­ness -

IN­DI­VID­U­ALS can now start sav­ing money into a life­time ISA for the first time from – if they can find a provider.

Savers must be aged 18 to 39 to open a life­time ISA and can con­trib­ute up to £4,000 each year un­til the age of 50.

The gov­ern­ment will add a 25 per cent bonus to the sav­ings, up to a max­i­mum of £1,000 per year. This bonus will be added at the end of the 2017/18 tax year and will be paid within 28 days of April 6. Dur­ing 2018/19 the bonus will be based on con­tri­bu­tions made each month.

Funds saved can be used to pur­chase a first home af­ter the ac­count has been open for 12 months if the prop­erty pur­chased is worth less than £450,000.

Sav­ings can be with­drawn af­ter the age of 60 to sup­port your re­tire­ment. Money ac­cessed or with­drawn be­fore reach­ing 60 will re­sult in a 25 per cent exit charge.

Talk to R A Cle­ment As­so­ci­ates about the tax and cash flow im­pli­ca­tions of the life­time ISA by call­ing 01631 562643.

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