Individual Savings Account
You can use a Lifetime ISA (Individual Savings Account) to buy your first home or save for later life. You must be 18 or over but under 40 to open a Lifetime ISA.
You can put in up to £4,000 each year, until you’re 50. 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 2017 to 2018 tax year.
You can hold cash or stocks and shares in your Lifetime ISA, or have a combination of both.
There’s a 25% charge to withdraw cash or assets from a Lifetime ISA. This doesn’t apply if you’re:
- buying your first home
- aged 60 or over
- terminally ill, with less than 12 months to live