Labour leader Ed Miliband responds to Chancellor of the Exchequer George Osborne's Budget statement to the House of Commons, London. PRESS ASSOCIATION Photo. Picture date: Wednesday March 18, 2015. See PA story BUDGET Main. Photo credit should read: PA Wire
Chancellor George Osborne has pledged to loosen rules on ISAs and step up support for first-time home buyers during his pre-election budget speech.
Mr Osborne said new, fully-flexible ISAs will allowing savers to take money out of their accounts and put it back later in the tax year without losing out on any of their tax free entitlement.
The annual savings limit for ISAs will be raised to £15,240 from £15,000, Mr Osborne told the House of Commons.
Furthermore, new Help to Buy ISAs will commit the government to paying 25% of prospective home owners’ deposits.
“For every £200 you save for your deposit, the government will top it up with £50 more,” he said.
“It’s as simple as this: we’ll work hand-in-hand to help you buy your first home.”
He said the new scheme will be ready in the autumn.
