The only provider (at the time of writing of this article) that offers a cash Lifetime ISA (Individual Savings Account), Skipton Building society has indicated that the deadline for transferring an existing Help to Buy ISA in to it's cash Lifetime ISA product is March 1.
Existing Help to Buy ISA holders who transfer in before the deadline can take advantage by transferring their existing balance in without it counting towards the £4,000 annual Lifetime ISA allowance.
A 25% government bonus will then be available on the combined funds. However, this bonus will only be paid on cash saved in the Help to Buy ISA as of April 5, 2017, the date of the launch of the Lifetime ISA product (Amelia Murray, Telegraph, December 2017).
The total amount you could have saved into a Help to Buy ISA product since it was launched in 2015 is £4,400 plus any interest earned within the account.
It will continue to be possible to contribute £200 per month until the scheme is scheduled to end in November 2029.
The Lifetime ISA is an account that allows you to save £4,000 per year, with the government topping up your account by a maximum of £33,000. In order to achieve this, the maximum contributions need to be invested from age 18 to 49.
In addition to the cash Lifetime ISA product, a stocks and shares Lifetime ISA policy type also exists. This has the same investment limits as the cash product, however, it enables you to invest in stocks & investment funds rather than being limited to cash.
Both types of Lifetime ISA will allow you to buy property that is not possible with the Help to Buy ISA which has a maximum of £250,000 for the rest of the UK and £450,000 in London. The Lifetime ISA will assist you in purchasing property worth up to £450,000 without geographical qualifications.
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The value of investments and income from them may go down as well as up and you may not get back the original amount invested.
Information is based on our current understanding of taxation legislation and regulations which is subject to change.
Want a cash Lifetime Isa? You must transfer by March 1