LIFETIME ISA
We have recently spoken with two separate clients who are both saving for their first house and simply holding money in a regular savings account, neither were aware of the lifetime ISA.
A lifetime ISA allows you to put in up to £4,000 each year & the government will add a 25% bonus to your savings, up to a maximum of £1,000 per year.
You can withdraw money from your ISA if you’re:
buying your first home
aged 60 or over
terminally ill, with less than 12 months to live
You will however pay a withdrawal charge of 25% if you withdraw cash or assets for any other reason (also known as making an unauthorised withdrawal). This recovers the government bonus you received on your original savings.