Budget 2016: Osborne unveils Lifetime ISA, raises limit to £20k

Help with first homes and retirement savings

The government has today unveiled a new Lifetime ISA to help savers aged under 40, and has raised the ISA limit to £20,000.

This would be applicable from April 2017 and allow under-40s to save £4,000 a year and receive £1 for every £4 they save. The government will also give savers the option to merge the new ISA with the Help to Buy ISA, meaning it can be put towards buying a home as well as saving for retirement. Funds can be used to buy a first home with the government bonus at any time from 12 months after opening the account, and can be withdrawn from the Lifetime ISA with the government bonus from age 60 for use in retirement. Chancellor George Osborne said: "For the self employed, this is the kin...