You’ll be able to open a Help to Buy ISA until 30 November 2019. Beyond that date, if you have one, you can keep saving in it until 30 November 2029. You must claim your bonus by 1 December 2030.
| Lifetime ISA | Help to Buy ISA | |
|---|---|---|
Age to open one | 18-39 | 16+ |
Annual contribution limit | £4,000 | £2,400 + an additional £1,000 in the first month |
Contribution type | Any – lump sum or monthly | Monthly, up to £200 |
Government bonus | 25% of contributions | 25% of contributions |
Maximum bonus | £1,000 per year until you're 49 | £3,000 total |
Bonus paid | Monthly | When you buy your home |
Earn interest/growth on bonus | Yes | No |
Eligible ISA type | Cash or stocks and shares | Cash |
Maximum property price | £450,000 | £450,000 in London, £250,000 everywhere else |
Earliest withdrawal period to buy first home with bonus | It must be at least 12 months since the first contribution was made to your Lifetime ISA | Once you’ve saved £1,600 |
‘Ineligible’ access penalty | A 25% government penalty on the total value of the withdrawal | None, you just don’t get the bonus |
No, we won’t be providing this service. Read our Help to Buy transfers FAQ
If you currently have a Help to Buy ISA you can continue to put money into it. You can transfer it to the Lifetime ISA (though not at Nutmeg), or you can choose to save into both — but you will only be able to use the bonus from one of them to buy your first property.
If you have a Help to Buy ISA, you can choose to transfer your savings into a Lifetime ISA. However, any funds transferred from a Help to Buy ISA to a Lifetime ISA will be treated as current year payments and count towards the annual Lifetime ISA limit. Please note, at this time Nutmeg does not accept Help to Buy transfers into a Lifetime ISA
A Lifetime ISA may not be right for everyone
As with all investing, your capital is at risk. The tax treatment depends on individual circumstances and may be subject to change in the future. If you are unsure if a Lifetime ISA is the right choice for you, please seek financial advice.