Friday 7 April 2017

Welcome LISA!!

The government has just launched the new Lifetime ISA for any UK resident aged between 18 and 40. Any savings put in before your 50th birthday will attract a government bonus of 25%. You can save up-to £4,000 per tax year, which means that the bonus added on the maximum savings will equate to £1,000.

The purpose of the LISA is to encourage people to save money and use the funds to buy a residential property as a first-time buyer or to provide savings for retir...ement at age 60. Withdrawals in either of these circumstances will not incur penalties, but any other type of withdrawal will be penalised.

You can use the LISA towards buying your first home worth up-to £450,000 in London, (£250,000 outside London), at any time from 12 months after opening the account. While funds remain invested, any interest and investment growth will be tax free.

The new LISA forms part of your overall normal annual ISA allowance, which has been increased for the 2016/17 tax year to £20,000.

Above all, do not forget - if you do not use your ISA allowance, you will lose it, so it's worth trying to make the very most of your allowance each year if you can. Please note that levels and bases of, and reliefs from, taxation are subject to change.

Contact us if you would like further information.

AWP