HMRC is consulting until 6 January 2017 on draft amending regulations to establish lifetime ISAs with effect from 6 April 2017. Adults under the age of 40 will be able to open an account and contribute up to £4,000 in each tax year, to which the government will add a 25% bonus. Account holders will be able to continue contributing up to the age of 50.
The regulations include rules on claiming the bonus and when withdrawals can be made without incurring a 25% charge (including for the first-time purchase of a residence up to a value of £450,000, on terminal illness, or where investments are transferred to another lifetime ISA, subject to certain conditions). Withdrawals can be made without charge after an account holder reaches 60.
The regulations also provide for an increase in the overall ISA limit from £15,240 to £20,000 from April 2017.
The draft Individual Savings Account (Amendment No. XX) Regulations 2017 can be found here.
HMRC is consulting until 6 January 2017 on draft amending regulations to establish lifetime ISAs with effect from 6 April 2017. Adults under the age of 40 will be able to open an account and contribute up to £4,000 in each tax year, to which the government will add a 25% bonus. Account holders will be able to continue contributing up to the age of 50.
The regulations include rules on claiming the bonus and when withdrawals can be made without incurring a 25% charge (including for the first-time purchase of a residence up to a value of £450,000, on terminal illness, or where investments are transferred to another lifetime ISA, subject to certain conditions). Withdrawals can be made without charge after an account holder reaches 60.
The regulations also provide for an increase in the overall ISA limit from £15,240 to £20,000 from April 2017.
The draft Individual Savings Account (Amendment No. XX) Regulations 2017 can be found here.
