2015 Budget brings good news for first time buyers
As expected, the recent Budget was a highly political affair, in which George Osborne took the opportunity to highlight the relative strength of the UK economy today
As well as revisions on spending, borrowing and an upbeat economic growth forecast, it also contained a number of announcements on ISAs, pensions, savings and tax.
Particularly relevant to our industry, the Chancellor introduced the Help to Buy ISA – which allows future home owners to save up to £200 a month towards their first home and the government will then boost it by 25%. That’s a bonus of £50 for every £200 saved, up to a maximum bonus of £3000.
The government has already introduced the Help to Buy scheme, allowing purchasers to secure their future home with just a 5% deposit and is now going further with this bespoke ISA.
In addition, the tax-free personal allowance is being increased in April 2017, to £11,000, ensuring more money earnt is kept. The allowance will rise to £10,800 in 2016-17, and £11,000 the year after.
The increases since 2010, to £11,000 in 2017-18 will save a typical taxpayer £905.
Last but not least – beer duty has been cut for the third year in a row! A penny knocked off the price of a pint, a 2% cut for spirits and most ciders, and a freeze on duty on wine.