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Budget 2015: George Osborne Unveils Help to Buy ISA Plans

Budget 2015: George Osborne Unveils Help to Buy ISA Plans

18th March 2015

The Chancellor announced a new scheme for first time buyers as he revealed the latest plans for a Help to Buy Isa. Essentially, the scheme will ‘top-up’ savings to help first-time buyers build a deposit. For every £200 you save, the Government will add £50.

In the example given by Mr Osborne, if you save £12,000 towards a deposit for your first home, the Government will top it up with an additional £3,000 – this is roughly equivalent to the tax that most savers would have paid on that income, so can be seen as a tax break for first-time buyers. (£3,000 is the maximum top-up available through the scheme).

The top-up will be available to each person who has saved into the ISA at the point when they use their savings to purchase their first home. Until that point, savers will have access to their own money and will be able to withdraw funds from the account if they need to but the top-up will only be available for a first home purchase.

"It's as simple as this - we'll work hand-in-hand with you to help you buy your first home," said Osborne.

The Help to Buy Isa savings account is expected to be ready for this autumn but there’s no reason why savers can’t start putting their own money away in advance. ISA savings accounts allow you to save up to £15,000 per year without paying tax on your savings.

If you have any questions about the new Help to Buy ISA plans, saving for a deposit or the properties available locally for first time buyers, contact SP Residential on 01622 692206 or email enquiries@sp-residential.co.uk