Help to buy ISA v’s land owner

mrsavvysaver

I currently have a help to buy ISA, which I save into regularly each month the maximum amount to get the 25% government addition. An opportunity has arisen to own a small parcel of land, under 1/4 acre, I was wondering, if I bought the piece of land would this have an effect on my help to buy ISA and result in losing the government bonus?

eskbanker

You're only ineligible for HTB ISA if that land "comprises a building that is used or suitable for use as a dwelling, or is in the process of being constructed or adapted for such use".

https://www.helptobuy.gov.uk/documents/2015/12/eligibility-of-ftbs.pdf/

margaretx9

If there is no private dwelling on the land then yes you remain eligible. 

eskbanker

margaretx9 said:

If there is no private dwelling on the land then yes you remain eligible. 

....unless there's a non-private dwelling.
Or a building suitable for use as a dwelling (private or otherwise).
Or one is being constructed for such use.
Or one is being adapted for such use.

Apart from that, great precis of the actual rule, as quoted in the previous post four hours earlier....

mrsavvysaver

It is just a piece of neglected land which is overgrown, no buildings of any description on it

mrsavvysaver

Section 2 A is a little bit questionable when it’s asking you to declare that you ‘have never owned any interest in land’  On the link re help to buy eligibility 

eskbanker

mrsavvysaver said:

Section 2 A is a little bit questionable when it’s asking you to declare that you ‘have never owned any interest in land’  On the link re help to buy eligibility 

But that's why it's necessarily to read it fully and carefully - you'll see at the end of 2(A) the all-important 'and' that brings 2(B) (and 2(C)) into play, so the three clauses need to be read together:

2. I do not own, and never have owned any interest in land, whether in the United Kingdom or elsewhere, which: 

(A) is: [technical definition of ownership in various territories]; and 

(B) comprises a building that is used or suitable for use as a dwelling, or is in the process of being constructed or adapted for such use; and 

(C) (i) which I acquired as a purchaser by way of sole or joint ownership; or (ii) which entitles me to possess or occupy that land.