The Lifetime ISA will be introduced in April 2017. Any adult under the age of 40 will be eligible to open a new lifetime ISA and save up to £4,000 each year.
Any savings you put into it before the age of 50 will receive an added 25% bonus from the government. The money can either:
· be withdrawn and used towards a deposit on a first home; or
· be saved until you are over 60 and used as retirement income. Beware though – if you take the money out before you are 60, you will lose the government bonus, and have to pay a 5% charge!
Please see here for further information.
ISA Limit is being increased..From April 2017, the ISA savings limit will be increased from £15,240 to £20,000 per year, meaning savers will be able to invest an extra £4,560 during the 2017-18 tax year.