Take the money out for anything else and you pay a 25% charge, which takes back the bonus and a little more. It suits people sure of their plan.
Quick facts
- Open
- Aged 18 to 39
- Pay in
- Up to £4,000 a year, until 50
- Bonus
- 25%, up to £1,000 a year
- First home
- Costing £450,000 or less
- Other withdrawals
- 25% charge
- From age
- 60, free to withdraw
How it works
You can put in up to £4,000 each year, until you’re 50. You must make your first payment into your ISA before you’re 40.
The government will add a 25% bonus to your savings, up to a maximum of £1,000 per year.
The Lifetime ISA limit of £4,000 counts towards your annual ISA limit. This is £20,000 for the 2026 to 2027 tax year.
Who can open one
You must be 18 or over but under 40 to open a Lifetime ISA.
Buying your first home
You can use your savings to help you buy your first home if the property costs £450,000 or less and you’re buying with a mortgage, among other conditions.
If the person you’re buying with has a Lifetime ISA, you can both use your savings and government bonus.
Taking money out
You can withdraw money from your ISA if you’re buying your first home, aged 60 or over, or terminally ill.
You’ll pay a withdrawal charge of 25% if you withdraw cash or assets for any other reason (also known as making an unauthorised withdrawal).
Common questions
How much is the Lifetime ISA bonus?
25% of what you pay in, up to £1,000 a year.
Who can open a Lifetime ISA?
Anyone aged 18 or over but under 40.
What is the house price limit?
£450,000.
What if I need the money for something else?
You pay a 25% withdrawal charge.