Tax-free savings scheme may benefit first-time buyers

A tax-free savings scheme may soon help first-time buyers have access to money to put down as a deposit for property investment, reports This Is Money.

The revelations were made by Chancellor Alistair Darling, who hinted plans were underway to set up a new version of the individual savings account (ISA).

"One of the things I'm looking at is to have a special ISA where people can save with perhaps better concessions, providing they put that money into a deposit for a house," the Chancellor said.

"The idea would be a big help to young people who cannot get a 100% mortgage because of the credit squeeze."

According to This Is Money, if the plans get a go-ahead, a couple could save up to £45,000 tax-free over a period of five years.

Currently, individual savings account regulations limit annual savings to £7,200.

The plans are still at an early stage.