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Savings can be withdrawn after the age of 60 to support your retirement. Money accessed or withdrawn before reaching 60 will result in a 25 per cent exit charge.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