In the HL Lifetime ISA you can invest in the stock market to grow your money and potentially reach your goals quicker. Although investments can go down as well as up so you could get back less than you invest. Benefit from:
Peace of mind – choose the UK’s leading investment platform, already trusted by over 876,000 clients with £70 billion
Expert guidance – see the latest research and investment ideas from our experts to help you choose from a range of investments.
Easy to manage – keep up-to-date with your investments online or using our new app for mobile
Great value – no set-up or transfer-in charges, no charges for buying or selling funds, low cost reinvestment service and an annual fee of just 0.45% or less. See our charges.
The property must cost £450,000 or less and be in the UK
The Lifetime ISA must have been opened for at least 12 months to benefit from the government's bonus
The bonus is per individual so two first time buyers (e.g. couples) can both use their bonus when buying together
After your 60th birthday
Withdraw the money tax free after age 60 and spend however you choose
The Lifetime ISA is designed to complement a pension when saving for your future.
If you decide to opt out of your workplace pension to pay into a Lifetime ISA, you will not benefit from any employer-matched contributions and it may affect your current and future entitlement to means-tested state benefits
Withdrawing the money early
If you withdraw the money before age 60 and it’s not to purchase your first home, you'll pay a 25% government withdrawal charge on any money you withdraw (except if you’re diagnosed with a terminal illness). This means you may get back less than you put in. For withdrawals made in 2017/18 tax year (between 6 April 2017 and 5 April 2018), this charge does not apply, although you will not receive any government bonus either.
Opening a Lifetime ISA with HL
You can open an HL Lifetime ISA online in minutes and benefit from an easy-to-manage account with award-winning service. Simply:
Make a payment Open with a lump sum of £100, or start saving from as little as £25 a month.
Choose your investments Or open your Lifetime ISA with cash and choose your investments later.
You can withdraw money tax free from the Lifetime ISA when used to purchase your first home worth under £450,000 (see ‘What are the restrictions on the property I can buy with my Lifetime ISA?’), after age 60 or following diagnosis of a terminal illness.
If you choose to withdraw the money at another time, this will count as an ‘unlisted withdrawal’ and will have a 25% government withdrawal charge deducted. This charge could result in you getting back less than you invest.
The charge does not apply if you withdraw money in the 2017/18 tax year. Unless you have been diagnosed with a terminal illness your Lifetime ISA will be closed and no bonus will be claimed.
Can I open the Lifetime ISA alongside other ISAs?
Yes, you can open and pay into other types of ISAs (Cash ISAs, Stocks & Shares ISAs or Innovative Finance ISAs) alongside your Lifetime ISA. As with other ISAs, you will only be able to pay into one Lifetime ISA in each tax year.
You can contribute up to £20,000 across all ISAs in the 2017/18 tax year, of which £4,000 can be contributed to a Lifetime ISA. The government bonus (up to £1,000 per year) will not count towards the £20,000 overall ISA limit or the £4,000 Lifetime ISA limit.
How and when is the government bonus paid?
The government bonus will be claimed by your Lifetime ISA provider from HMRC and automatically added to your account.
For contributions made during the 2017/18 tax year (between 6 April 2017 and 5 April 2018), we will claim your bonus from HMRC in April 2018 and it will be paid into your account by 4 May.
From 6 April 2018 onwards, we will claim the bonus at the earliest opportunity and you will receive the bonus by the 6th day of the following month.
What are the restrictions on the property I can buy with my Lifetime ISA?
You must not own and have never owned a home to be able to use the money in the Lifetime ISA (including the government’s bonus) to purchase your first property.
The property you buy must be in the UK costing up to £450,000. It must also be funded by a mortgage or regulated home purchase plan meaning a cash purchase would not be permitted.
You will need to have had the Lifetime ISA open for at least 12 months to qualify for the government’s bonus. This means you should be looking to purchase your first property after 6 April 2018 at the earliest.
In most cases, the individual must occupy the property as their only or main residence.
Can I open a Lifetime ISA in joint names?
No, you can only open a Lifetime ISA in individual names. This is the same with all ISAs. However, each individual under 40 can open a Lifetime ISA meaning multiple first time buyers (e.g. couples) can benefit from their bonus when they buy together.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice from our Financial Advisers.