Accounts
Lifetime ISA
25% government bonus for a first home or retirement
A Lifetime ISA gives you a 25% government bonus on contributions up to £4,000/year (max £1,000 bonus). Withdrawals are penalty-free for a first home (up to £450k) or from age 60.
Key features & allowances
- £4,000 annual contribution (counts toward £20k ISA allowance)
- 25% government bonus (up to £1,000/yr)
- Withdraw penalty-free for first home or age 60+
- Can be cash or stocks & shares
Best for
- First-time buyers saving a deposit
- Under-40s planning for retirement
- Maximising free government money
Risks & considerations
Must open before age 40. Early withdrawals (other than for a first home or terminal illness) face a 25% penalty — more than the bonus received.
For information only and not personal financial advice. Tax rules refer to the 2026/27 tax year and may change.