ISAs

Question 1

Help to buy ISA

Answer 1

• New scheme - Available from 1/12/2015
• Scheme to run for 4 years but savers can continue indefinitely and get bonus whenever
• Government bonus added to savings for First Time Buyers 16+
• Every £200 saved gets £50 Govn’t bonus up to maximum £3000 from Govn’t for £12,000 personal savings
• Maximum initial deposit is £1200 lump sum then maximum monthly saving £200 thereafter
• Bonus only paid towards purchase of first home up to £450,000 London/£250,000 elsewhere
• Savers will have access to funds and can withdraw for whatever purpose if needed
• Cannot fund a normal Cash ISA & a Help to Buy ISA at same time

Question 2

Additional permitted subscription.

Answer 2

• On death, the surviving spouse receives an additional ISA allowance.
• This is in addition to their own ISA allowance.
• The amount of the APS = a one-off ISA allowance, equal to the value of the deceased’s Isa holdings.
• APS is available for three years after the date of death, or if longer, 180 days after the estate has been administered.
• The value of the ISA may increase or decrease from death to the date of distribution, the special one-off ISA allowance will be for the value of the deceased’s ISA at the date of death.