Lifetime ISA in a nutshell
- UK residents aged 18-39 can open a Lifetime ISA.
- You can contribute up to £4,000 a year up until you reach the age of 50.
- The government will give you a 25% bonus on contributions – that’s a potential
£1,000 ‘free money’ every year.
- Use your savings to buy your first home up to a value of £450,000, for anything
you’d like once you’re 60, or if you're terminally ill.
- If you need to access your money for any other reason, you’ll pay a hefty
- Your Lifetime ISA contributions count as part of your 2019/20 annual ISA
allowance of £20,000.
- You can contribute to both a stocks and shares Lifetime ISA and a ‘regular’
stocks and shares ISA in the same tax year.
- As a rule of thumb, if you're employed, employer pension contributions plus any
tax relief is likely to outweigh Lifetime ISA 25% government bonus.
- If you’ve maxed out contributions on your workplace pension and you want to save
more, the Lifetime ISA could be a good option.
- You can contribute to a Lifetime ISA for someone else provided they’re eligible.
- Some of the rules around the Lifetime ISA are complicated. If you’re unsure if a
Lifetime ISA is the right choice for you, please seek financial advice.