LISA (new, if you’re lucky enough…)

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LISAs or Lifetime Individual Savings Accounts will be available from 6 April 2017.  These will allow up to £4,000 to be saved, on top of which government will give you back the basic rate tax you had paid earning the £4,000.  Thus £4,000 becomes £5,000 in the LISA.  Unfortunately they won’t give you back the national insurance or any higher rate tax you have paid.

The savings must be spent on a first time house purchase costing up to £450,000, or left in the account until you’re 60.  If you do anything else with the money then not only do government keep the £1,000 tax, and any interest paid on the account, they will also take a further £50 (5%) for good measure.

If you can remember that John Major started the names thing with TESSA, then unfortunately you may not qualify for a LISA as you will have to be under the age of 40 to open one.