Following consultation the government has issued further details of the new Lifetime ISA account which is expected to be available from April 2017.
In summary the account will be available to adults under the age of 40 and individuals will be able to contribute up to £4,000 per year and receive a 25% bonus from the government. Funds, including the government bonus, can be used to buy a first home at any time from 12 months after opening the account and can be withdrawn from age 60 completely tax free.
The new Lifetime ISA is designed to allow flexible saving for first time buyers and those wishing to save for their retirement.
Further details of the new Lifetime ISA are as follows: