Should you try and use it to buy a property over the £450,000 London cap, you’re hit with a 25 per cent penalty charge. If you saved £20,000 with a £5,000 bonus, for example, you would need to pay back £6,250. In the 2022-23 tax year there were £47.2 million of withdrawal charges recorded by HMRC.
First-time buyers: “I’m angry that I have wasted my time completely with the Help to Buy ISA”
