George Osborne announced a new savings product – the Lifetime ISA. From April 2017, adults under 40 can save up to £4,000 per year. Every £4 saved will be matched by £1 from the government, up to the age of 50.
The savings can be withdrawn tax-free if used towards a deposit on a first home worth up to £450,000. They are also tax-free if they remain in the account until after the holder turns 60.
If the funds are withdrawn at any other stage the government bonus, and any interest it has incurred, will be removed.
Tax treatment varies according to individual circumstances and is subject to change.