Lifetime ISA explained

Save with a 25% government bonus for your money to buy your first home or help towards your retirement

Apply for a Lifetime ISA

A guide to Lifetime ISAs

Accessing your Lifetime ISA

In the first 12 months any withdrawals you make from your LISA are subject to a 25% government withdrawal charge. After the first 12 months you can use your LISA towards your first home or retirement penalty-free.

If you withdraw from your LISA for any other reason, the amount you take out is subject to the 25% government withdrawal charge.

This means you could end up with less then you originally deposited. Your LISA is also subject to a penalty if you transfer into a different type of ISA or other account.

When can you use your LISA without a penalty?

Any deposits you make into a LISA will count towards your LISA allowance and your annual ISA allowance. You can access your LISA funds without the government withdrawal charge applying:

• If you’re buying your first home and your LISA has been open for at least 12 months
• When you're 60 years old
• If you’re diagnosed with a terminal illness

Things to know about a Lifetime ISA

• You can have more than one LISA at a given time, but you can only open and fund one in a tax year.
• You’re able to transfer your Lifetime ISAs between providers – be careful and do this through your provider to avoid losing your ISA status on your funds and incurring the 25% government withdrawal charge.
• You must be a first time buyer to use a LISA to buy your first home. You can’t have owned a property, or a share in a property in the UK or aboard, have inherited a property, or be the beneficiary of a trust including property.