Help to Buy ISA Overview
The Help to Buy ISA was closed to new savers on 30 November 2019, but existing account holders can continue saving until 30 November 2029. If you already have a Help to Buy ISA, you can still claim the 25% government bonus when purchasing your first home.
Closed to New Savers
No new Help to Buy ISA accounts can be opened since November 2019. New first-time buyers should consider the Lifetime ISA instead, which offers similar benefits with more flexibility.
How the Help to Buy ISA Works
25% Government Bonus
Government adds 25% to your savings, up to maximum bonus of £3,000.
Monthly Savings
Save £200 per month maximum, with £1,200 allowed in first month.
First-Time Buyers Only
Must be purchasing your first home to qualify for the government bonus.
Scheme Ending
Final savings deadline: 30 November 2029. Bonus claims until 1 December 2030.
Contribution Limits
Help to Buy ISA Limits
First month: Up to £1,200
Monthly thereafter: Up to £200
Maximum total savings: £12,000
Maximum government bonus: £3,000
Total potential fund: £15,000
Claiming Your Government Bonus
Step-by-Step Claiming Process
How to Claim Your Bonus
Find Eligible Property
Property must be under £250,000 outside London or £450,000 in London.
Instruct Conveyancer
Choose a solicitor or conveyancer to handle your property purchase.
Request Closing Statement
Ask your ISA provider for Help to Buy ISA closing statement during conveyancing.
Submit Bonus Application
Conveyancer submits application with closing statement and purchase details.
Receive Bonus Payment
Government bonus paid directly to conveyancer to use towards purchase.
Required Documentation
ISA Closing Statement
Official statement from your ISA provider showing total savings and eligibility.
Property Details
Purchase price, property address, and confirmation it's your first home.
Legal Confirmation
Conveyancer must confirm first-time buyer status and property eligibility.
Mortgage Details
If applicable, details of mortgage being used for the property purchase.
Property Purchase Requirements
Eligible Property Types
Property Requirements
Any residential property is eligible, including new builds, existing homes, leasehold, and freehold properties. The property must be your main residence and you must be a first-time buyer.
Price Limits
| Location | Maximum Property Price | Examples |
|---|---|---|
| London | £450,000 | All London boroughs |
| Rest of England | £250,000 | All areas outside London |
| Wales | £250,000 | All Welsh regions |
| Scotland | £250,000 | All Scottish areas |
First-Time Buyer Definition
- Never owned property: You must never have owned a residential property anywhere in the world
- Joint purchases: All buyers must be first-time buyers if buying jointly
- Inherited property: If you inherited property, you may still qualify if you never lived in it as your main home
- Foreign property: Ownership of property abroad disqualifies you from first-time buyer status
Calculate Your Help to Buy ISA Value
Work out how much government bonus you'll receive and your total purchasing fund.
Help to Buy ISA CalculatorTransitioning to Lifetime ISA
Transfer Options
Transfer Deadline Passed
The deadline to transfer Help to Buy ISA funds to a Lifetime ISA was 6 April 2018. You cannot transfer existing Help to Buy ISA savings to a Lifetime ISA, but you can open a new Lifetime ISA separately if eligible.
Running Both Accounts
Keep Help to Buy ISA
Continue with existing Help to Buy ISA until you're ready to claim the bonus.
Open Lifetime ISA
If aged 18-39, you can open a new Lifetime ISA for additional savings.
Choose One Bonus
You can only claim government bonus from one scheme per property purchase.
Compare Benefits
Calculate which scheme offers the better bonus for your savings level.
Help to Buy ISA vs Lifetime ISA Comparison
| Feature | Help to Buy ISA | Lifetime ISA |
|---|---|---|
| New accounts | Closed since Nov 2019 | Open to ages 18-39 |
| Monthly limit | £200 | £333 (£4,000 annual) |
| Government bonus | 25% (max £3,000) | 25% (max £1,000/year) |
| Property price limit | £250k/£450k London | £450,000 nationwide |
| Withdrawal penalties | None for house purchase | 25% penalty except house/retirement |
Common Scenarios and Solutions
Frequent Questions
Property Over Price Limit
You forfeit the government bonus but can still use your savings. Consider different area or property type.
Changed Mind About Buying
You can keep saving until November 2029 or withdraw funds (losing bonus eligibility).
Partner Already Owns Property
If buying jointly, you cannot claim the bonus. Consider sole purchase if financially viable.
Property Purchase Falls Through
You can try again with another property. The bonus claim can be made on any eligible purchase.
Maximizing Your Bonus
Optimization Strategy
Continue Regular Savings
Keep contributing £200 monthly until ready to buy to maximize your bonus.
Shop Within Price Limits
Focus property search on homes under the price thresholds.
Calculate Total Impact
Include bonus when calculating affordability and deposit requirements.
Don't Rush
You have until December 2030 to claim bonus, so take time to find right property.
Tax Implications and Benefits
Tax Treatment
Tax-Free Growth
Interest earned in your Help to Buy ISA is tax-free, and the government bonus is not subject to income tax. Your annual ISA allowance is not affected by the government bonus payment.
ISA Allowance Considerations
- Annual ISA allowance: Help to Buy ISA contributions count towards your £20,000 annual ISA limit
- Cash ISA restrictions: You can only pay into one cash ISA per tax year
- Stocks & Shares ISA: You can contribute to a Stocks & Shares ISA in the same tax year
- Lifetime ISA interaction: Both count towards annual ISA allowance if running simultaneously
Record Keeping
Important Documentation
Keep all statements showing contributions and interest earned. Retain the closing statement provided when claiming your bonus, as this serves as proof of the government bonus payment for tax purposes.
Alternative Options
If You Don't Buy Property
Continue Saving
Keep the account open and save until the November 2029 deadline.
Withdraw Savings
Access your savings plus interest but forfeit government bonus eligibility.
Consider Lifetime ISA
Open a new Lifetime ISA for retirement savings with 25% bonus.
Investment Options
Transfer funds to Stocks & Shares ISA for potential higher returns.
For New First-Time Buyers
Lifetime ISA Recommended
New first-time buyers should use the Lifetime ISA instead. It offers higher contribution limits (£4,000/year vs £2,400), better property price limits (£450,000 nationwide), and can be used for retirement as well as house purchase.
Professional Advice
When to Seek Help
Complex Property Purchases
Leasehold complications, shared ownership, or properties near price limits.
Joint Purchase Decisions
When one partner isn't a first-time buyer or has different savings goals.
Investment Strategy
Deciding between cash ISA and Stocks & Shares ISA for Help to Buy funds.
Tax Planning
Maximizing overall ISA strategy and understanding tax implications.
Free Guidance Available
Most banks and building societies offer free guidance on Help to Buy ISA claims. MoneyHelper (government service) provides free, impartial advice on ISA options and first-time buyer schemes.
Important Deadlines
Key Dates to Remember
Help to Buy ISA Timeline
30 November 2019
Last day to open new Help to Buy ISA accounts.
30 November 2029
Final deadline for making contributions to existing accounts.
1 December 2030
Final deadline for claiming government bonus on property purchases.
After December 2030
No more bonus claims possible. Scheme permanently closed.
Don't Miss the Deadline
If you're planning to buy property and claim your Help to Buy ISA bonus, ensure your purchase completes and bonus claim is submitted before 1 December 2030. After this date, you'll lose eligibility for the 25% government bonus permanently.