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Lifetime ISA

How much could your Lifetime ISA be worth?

Amount you'd like to invest each year

£ or £83.33 per month

Please enter a valid birth date. You must be between 18 and 39 years old to start a Lifetime ISA.

20 years


About this calculator: this calculator is an example - it doesn't show what your investments will actually be worth. Remember investments can go down as well as up in value so you could get back less than you put in. Tax rules can change and their benefits depend on your circumstances.

More about the Lifetime ISA rules and allowances

Once opened, you can contribute £4,000 each year up until the day before your 50th birthday and the government will add an extra 25% bonus – up to £1,000 each year.

What is the Lifetime ISA allowance?

The maximum you can contribute to your Lifetime ISA is £4,000 per year. This makes up part of your overall ISA allowance (£20,000 across all ISAs) for the current tax year.

What’s the maximum government bonus I can receive each year?

Any contributions you make to a Lifetime ISA before your 50th birthday will receive a 25% bonus from the government. Since you can contribute up to a maximum of £4,000 to a Lifetime ISA each tax year, the maximum bonus each year will be £1,000 (25% of £4,000).

For contributions made during the 2017/18 tax year (between 6 April 2017 and 5 April 2018), the bonus will be paid within four weeks of 6 April 2018. From the 2018/19 tax year onwards, the bonus will be paid monthly.

Lifetime ISA bonuses won't count towards either the £4,000 Lifetime ISA limit or the overall £20,000 ISA limit.

And if you transfer a Help to Buy ISA to a Lifetime ISA this tax year, you could get an ever larger government bonus. Find out more

Who is eligible to contribute to a Lifetime ISA?

If you're between 18 and 39 you can open a Lifetime ISA. And while you're under the age of 50 you can contribute up to £4,000 a year and receive an added 25% government bonus.

When can I withdraw from my Lifetime ISA?

You can withdraw the money for an eligible property purchase, after age 60 or if you are diagnosed with a terminal illness. If you withdrawal the money at any other time you'll have to pay a 25% government withdrawal charge, except withdrawals in the 2017/18 tax year (see below).

If you pay a withdrawal charge this may mean you receive back less than you have invested. For example, you contribute £4,000 and receive a £1,000 bonus. You then withdraw this £5,000 and are subject to a £1,250 government withdrawal charge and get back £3,750.

  • An eligible property purchase

    Once your Lifetime ISA has been open for 12 months, you can use the money (including the government bonus) to buy your first home. Your first home must be in the UK and can cost up to £450,000. You'll need to be buying it using a mortgage or other regulated home purchase plan. If your Lifetime ISA has been open for less than 12 months, there will be a government withdrawal charge on the withdrawal.

  • For retirement

    You can also use a Lifetime ISA to save for your retirement and you can use the money without a government withdrawal charge after the age of 60. You can use your Lifetime ISA alongside other accounts (such as pensions) when saving for your retirement.

    If you're thinking of opting out of your workplace pension to pay into a Lifetime ISA, just remember you won't benefit from any employer contributions and it may affect your current and future entitlement to means-tested state benefits.

  • During terminal ill health
    If you are diagnosed with a terminal illness, you'll be allowed to withdraw money from your Lifetime ISA without paying any government withdrawal charge.
  • During the 2017/18 tax year
    If you withdraw money in the 2017/18 tax year for any reason, your Lifetime ISA will be closed. You won't receive the bonus or pay the government withdrawal charge. This exception applies for the 2017/18 tax year only.

New to investing?

Have a look at our Beginner’s Guide to Investing to find out about types of investments and how to get started.

Or download a Guide to ISAs to learn more about how ISAs work.

I am a first time investor in stocks and shares and have gained a lot of confidence investing with HL.



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