The budget 2016 was a hurrah for some and a moan for others. For prospective first time buyers, it definitely seems to be in the happier category. This year’s budget revealed a new opportunity and help scheme to get you onto the property ladder. In fact, it’s being failed as one of the great new changes that was announced.
First off we have the new ‘Lifetime ISA’ to help you secure a home. From April 2017 savers will receive a 25% bonus on their savings. A maximum of £4,000 can go in, with a bonus of £1,000 until the age of 50.
What’s more, if you have a help-to-buy ISA you can transfer that money into a lifetime ISA. And if you have enough money within a year, you’re free to use it and buy. You can also withdraw cash from it at any time without being taxed. The property market has embraced this help-scheme as it’s great news for anyone looking to buy!
Under the lifetime ISA all money put in would be tax-paid, but once taken out will be tax free. The lifetime ISA is not limited to a one-per-house basis, rather if you’re looking to buy a house jointly, you and the other party can both use your bonuses’ to buy the house.
Most people are being left puzzled on what ISA to use, and in simple terms the easiest way to find what will be most profitable for you is to seek legal advice.
In other property news from the budget, half a million people will now pay less tax due to a new tax reform for people living on middle band incomes. The threshold for a higher tax rate will now be raised to £43,000.
Also, ordinary ISA’s are now changing, with an upgraded limit on the amount you can save. It’s increased from £15,240 to £20,000. Good news for anyone looking to save their money and earn more profit!
Local councils are now to offer more financial and legal support to building new homes. The chancellor announced this new liaison so that more houses can be built, quickly to house the growing number of people looking to own or rent a house.
And lastly, a more charitable aspect of the budget, more money is not going into the homeless and rough sleepers. £115 million pounds is being put towards them, too provide low-cost accommodation.