The lifetime ISA - announced by Chancellor George Osborne in today's budget - will allow those between 18-40 to open an account and save up to £4,000 a year until age 50.
Contributions into the Lifetime ISA will receive a government bonus of 25% - up to £1,000 a year. The savings and bonus can be used towards a deposit on a first home worth up to £450,000 across the country. Accounts are limited to one per person rather than one per home - so two first time buyers can both receive a bonus when buying together. If an individual has a Help to Buy ISA they can transfer those savings into the Lifetime ISA in 2017, or continue saving into both - but they will only be able to use the bonus from one to buy a house Individuals will be allowed to withdraw...
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