Build Toward Your First Home or Future.
A Lifetime ISA can help eligible UK savers build money towards their first home or later life, with a government bonus on qualifying contributions. Understand how the Lifetime ISA works, who can open one, how the bonus works and when withdrawals can be made without a charge.
25% Bonus
Government bonus on qualifying contributions, subject to the annual Lifetime ISA rules.
What Is a Lifetime ISA?
A Lifetime ISA, commonly called a LISA, is an ISA designed around two major long-term goals: buying a first home or saving for later life. Eligible savers can contribute up to £4,000 each tax year until age 50 and receive a 25% government bonus on qualifying contributions.
The £4,000 Lifetime ISA contribution limit forms part of the overall ISA allowance. For the 2026/27 tax year, the overall ISA allowance is £20,000. :contentReference[oaicite:1]{index=1}
Annual LISA Limit
You can contribute up to £4,000 each tax year, subject to the Lifetime ISA rules.
Government Bonus
Qualifying contributions receive a 25% government bonus, up to £1,000 per tax year.
Opening Age
You must make your first payment into a Lifetime ISA before reaching age 40.
Contribution Age
Contributions and government bonuses stop when you reach age 50.
How Does a Lifetime ISA Work?
The Lifetime ISA combines an ISA wrapper with a government bonus. You can hold cash or qualifying investments inside the account, depending on the product you choose. :contentReference[oaicite:2]{index=2}
Open Before 40
You generally need to be aged 18 or over and under 40 to open a Lifetime ISA and make your first payment.
Contribute Up To £4,000
You can contribute up to £4,000 per tax year until age 50, subject to the Lifetime ISA rules.
Receive The Government Bonus
The government adds 25% to qualifying contributions, with a maximum bonus of £1,000 per tax year.
Use It For An Eligible Goal
The money can generally be withdrawn without the charge for a qualifying first-home purchase or from age 60.
Using a Lifetime ISA to Buy Your First Home
One of the main reasons people consider a Lifetime ISA is to build a deposit for their first residential property. There are specific conditions that must be met before a withdrawal can be made without the usual charge. :contentReference[oaicite:3]{index=3}
Your LISA can become part of your home-buying plan.
For a qualifying first-home purchase, the property must generally cost £450,000 or less, the first payment into the Lifetime ISA must have been made at least 12 months earlier, and the purchase must meet the applicable conditions. The funds are paid through the appropriate conveyancing process. :contentReference[oaicite:4]{index=4}
Saving For Life After 60
A Lifetime ISA can also be used as a long-term savings vehicle. You can normally withdraw your Lifetime ISA savings without the withdrawal charge once you reach age 60. :contentReference[oaicite:5]{index=5}
The Lifetime ISA Isn't Right For Every Goal
The 25% bonus can be attractive, but the account also comes with restrictions. Understanding them is just as important as understanding the bonus.
Withdrawal Charge
Withdrawals that do not qualify for a charge-free purpose are generally subject to a 25% withdrawal charge. This can reduce the amount you receive below your original contribution. :contentReference[oaicite:6]{index=6}
Contribution Limit
The Lifetime ISA contribution limit is £4,000 per tax year, which means it is only one part of a wider savings and investment strategy.
Investment Values Can Move
If you choose a Stocks & Shares Lifetime ISA, investments can rise and fall in value. The government bonus does not remove investment risk.
Where a Lifetime ISA Can Fit Into Your Plan
A LISA should be considered alongside your wider savings, investing and retirement strategy rather than in isolation.
Understand Long-Term Investing
Learn how investing works, how risk affects potential returns and why your timeframe matters when deciding where to put long-term money.
Explore Investing → 02 · RETIREMENTThink Beyond One Account
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Lifetime ISA FAQs
Clear answers to common questions about Lifetime ISA eligibility, bonuses, withdrawals and first-home purchases.
Plan Today. Build Your Tomorrow.
Understand how Lifetime ISAs work, consider the rules carefully and build a savings strategy around your own home-buying or long-term goals.