|Lifetime ISA||Help to Buy ISA|
|Who can open the account?||18-39 year olds||First-time buyers aged over 16|
|Can you invest lump sums?||Yes||No – monthly payments only (£200 maximum per month). an additional payment of £1,000 can be made in the first month|
|What is the government bonus?||Up to £1,000 each tax year until you turn 50*||Up to £3,000 in total|
|When do I receive the government bonus?||Annually for 2017/18 tax year and monthly from 2018/19||On completion of buying your first home|
|Can I earn interest on, or invest the government bonus?||Yes. You can invest or earn interest on the government bonus as soon as it has been paid in to your Lifetime ISA||No. The bonus is paid to your conveyancer when you buy your first home|
|When can I use the money to buy a house?||Anytime, however a withdrawal to purchase a home before the Lifetime ISA has been open for 12 months will result in a 25% government withdrawal charge**||After £1,600 has been saved|
|What’s the maximum property value allowed?||£450,000||£250,000 (£450,000 in London)|
|Can I withdraw the money for any reason other than buying my first home?||You can withdraw your money tax free after your 60th birthday. From 6 April 2018, withdrawals made before you are 60 which are not for an eligible house purchase will usually incur a 25% government withdrawal charge**||You can withdraw your money at any time but won't receive the government bonus on monies you withdraw|
*You can also earn a bonus on a single transfer from a Help to Buy ISA to a Lifetime ISA in the 2017/18 tax year.
**This is not applicable to withdrawals in the 2017/18 tax year where the government withdrawal charge will not apply but no bonus will be received.Transfer to a Lifetime ISA
Tom has a Help to Buy ISA which is valued at £3,000 on 5 April 2017. He transfers his Help to Buy ISA on 6 April 2017 (2017/18 tax year) and qualifies for the 25% government bonus (£750). Tom can also contribute up to the Lifetime ISA allowance (£4,000) for the 2017/18 tax year and receive the government bonus for this too, resulting in up to £8,750 being paid into his Lifetime ISA in respect of the 2017/18 tax year.