Draft Individual Savings Account (Amendment No.2) Regulations 2017 — Lifetime ISA Regulations — 20 Mar 2017 at 21:41

The majority of MPs vote in favour of introducing the Lifetime ISA, a savings account to which the government adds an additional 25% of what is paid in each year. The account is subject to restrictions and penalties.

The motion supported by the majority of MPs in this vote was:

• That the draft Individual Savings Account (Amendment No.2) Regulations 2017, which were laid before this House on 20 February, be approved

The regulations establish the new Lifetime ISA account from 6 April 2017.

£4,000 per year can be paid into a Lifetime ISA account and the Government adds an additional 25%; so £1000 per year for those with the maximum amount to save.

Accounts can only be opened by those under forty years old, and payments into them cannot be made by those over fifty years old. There is a withdrawal charge of 25% if funds are withdrawn before the age of sixty, other than in certain circumstances including for a first time purchase of a residential property.

Debate in Parliament |