How does a Help to Buy Isa work?

From 1 December first-time buyers will be able to save in a Help to Buy Individual Savings Account (HTB Isa) and the government will add money to it.

Help to buy ISA

Help to buy ISA

 


As with your traditional cash ISA, the interest you earn will be free of both income and capital gains tax.

In addition, when savers take money out to buy a house or flat, the government will add 25% to whatever is in the account, up to a maximum of £3,000.

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