Earn 25% Tax Free Bonus with Government Help to Buy ISA but only if you start before 30 Nov
A Help to Buy ISA is a government scheme helping you save for a mortgage deposit to buy your first home. You must be a first-time buyer to qualify and not own a property anywhere in the world.
Savings are tax free just like with any ISA product, however, a Help to Buy ISA gives you the added bonus of getting government contributions.
How does the Help to Buy ISA work?
The government tops up your contributions by 25%, up to a maximum contribution limit of £12,000. In other words, for every £200 you save, the government will contribute £50. This means you can earn a maximum of £3,000 from the government.
The minimum amount you need to save in order to qualify for a government bonus is £1,600 (which gives you a £400 bonus).
You can start off your ISA with an initial deposit of up to £1,000 which also qualifies for the 25% boost from the government.
Remember, Help to Buy ISAs are available to each first-time buyer, not each home. So, if you’re buying a property with your partner, you’ll be able to get up to £6,000 towards your deposit.
Help to Buy ISAs are available until 30 November 2019. They won’t be available to new savers after this date, but if you opened your Help to Buy ISA before then you can keep saving into your account. You must claim your bonus by 1 December 2030.
Word of the Day
Land Transaction Tax (LTT)
LTT replaced Stamp Duty, which still applies in England, in Wales in 2018.
If you’re buying a home in Wales costing more than £180,000, you’ll have to pay Land Transaction Tax (LTT) on your purchase.
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