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Lifetime ISA hero

Lifetime ISA

Save and invest for your first home or later life with a Lifetime ISA

Open a Lifetime ISA Top up a Lifetime ISA

Important information - Investments can go down as well as up in value, so you could get back less than you put in. The information on this page isn't advice - please ask us for advice if you’re not sure which investments are right for you. ISA tax rules can change and their benefits depend on your circumstances. You can withdraw money from a Lifetime ISA to buy your first home, or at age 60. Other withdrawals will usually mean a 25% government charge, so you could get back less than you put in. Using a Lifetime ISA for later life complements a pension.

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“The Lifetime ISA offers an exciting and flexible way to save for your first home or later life.

If you're aged between 18 and 39, you can open a Lifetime ISA and get £1,000 from the government each year.

So, how does it work?

You can put in up to £4,000 a year, and the government will add a 25% bonus on any money you've saved before your 50th birthday. This means for every £4 you save, you get £1 extra - up to £1,000 each year.

After 12 months, you can use the money to buy your first home, worth up to £450,000. Or you can wait until your 60th birthday and withdraw the money tax-free.

In the Lifetime ISA, you can save as cash or invest in the stock market.

If you expect to use the money within five years, cash is likely to be your best option. However, if you're planning to save for more than five years, you may want to consider investing in the stock market, which could provide greater returns and help you reach your goal quicker. But bear in mind investing is higher risk and you could make a loss.

So, if you're looking for a flexible way to save for your future, the Lifetime ISA could be for you.”

Disclaimer:

Unlike cash, investments can fall as well as rise in value so investors could get back less than invested, especially over the short term (less than five years).

Withdrawals from a LISA before age 60, other than to purchase your first home, will usually be subject to a 25% penalty.

The LISA must be held for 12 months before the government bonus can be used to purchase your first home.

ISA rules can change and the benefits will depend on individual circumstances.

If saving for retirement, you should ensure you are getting the maximum benefit offered by your employer first.

Savings in a Lifetime ISA may affect your entitlement (if any) to means tested state benefits.

This is not personal advice, if you are unsure of the suitability of any investment you should seek advice.

What is a Lifetime ISA?

A Lifetime ISA is a flexible way to save and invest for your first home or later life. You can open one if you’re between 18 and 39 years old.

You can choose to save cash or invest in the stock market, and as with other ISAs, your money can grow free from UK tax. But the real benefit is an extra 25% from the government of up to £1,000 a year.

How Lifetime ISA rules work

You can contribute up to £4,000 each tax year into the Lifetime ISA and the government will add a further 25%. So for every £4 you save, you get £1 extra - up to £1,000 per tax year.

You need to be between 18 and 39 to open a Lifetime ISA. But you can still pay in – and get the government bonus – until you turn 50.

Try our Lifetime ISA calculator to see the government bonus you could receive over time.

Tax rules can change and their benefits depend on your circumstances. Lifetime ISA allowance forms part of the overall £20,000 annual allowance.

Invest up to

£4,000

each tax year

and receive a
government bonus of

25%

Invest up to

£4,000

each tax year

and receive a
government bonus of

25%

Invest up to

£4,000

each tax year

and receive a
government bonus of

25%

How Lifetime ISA rules work

You can contribute up to £4,000 each tax year into the Lifetime ISA and the government will add a further 25%. So for every £4 you save, you get £1 extra - up to £1,000 per tax year.

You need to be between 18 and 39 to open a Lifetime ISA. But you can still pay in – and get the government bonus – until you turn 50.

Try our Lifetime ISA calculator to see the government bonus you could receive over time.

Tax rules can change and their benefits depend on your circumstances. Lifetime ISA allowance forms part of the overall £20,000 annual allowance.

Withdrawing money from a LISA

After 12 months from the first payment, you can use the money to make an eligible house purchase for a property worth up to £450,000. Or you can wait until you're 60 and take your money out then.

If you want to take money out before you're 60 and you aren't buying your first home, there's usually a 25% government charge. That means you could get back less than you originally put in.

Learn more about withdrawing from a LISA

ANNUAL 0.45% ACCOUNT CHARGE

HL Lifetime ISA charges

The annual charge for holding investments in a Lifetime ISA is never more than 0.45%. Your dealing and other charges will depend on the investments you choose and will apply in addition to our annual account charge.

See all HL Lifetime ISA charges

Two simple ways to start a Lifetime ISA

Open a Lifetime ISA

Once you've decided you'd like to open a Lifetime ISA, it takes less than five minutes to get started.

You can start a Lifetime ISA from £100 or as little as £25 per month.

You'll just need a debit card and your national insurance number to hand.

Open a Lifetime ISA

Transfer to the HL Lifetime ISA

You can transfer existing ISAs to HL.

Just let us know you want to transfer and we'll take care of the rest.

Transfer to the HL Lifetime ISA

Join over 100,000 clients using the HL Lifetime ISA

Security - we're a FTSE 100 company, trusted by over one million clients and regulated by the Financial Conduct Authority
Ease - check your Lifetime ISA anytime online or with the HL app
Automatic bonus - we’ll claim your government bonus and add it to your account automatically
Award-winning - we've won over 200 awards, including Best Investment Platform 2021 from the Your Money Awards, and Best ISA Provider 2021 by Money Age Awards
UK-based helpdesk - speak to our client support experts if you have any questions

Your investment options

Over 3,000 funds
UK and overseas shares
Investment trusts, bonds and exchange-traded funds (ETFs)

With a Lifetime ISA your investment choice will probably depend on when you need to use the money. Less than five years, then cash is likely to be your best option. But if you're planning to invest for longer than five years, you might want to think about the stock market. If you’re not sure where you’d like to invest, our latest Lifetime ISA investment ideas could provide some inspiration. Remember investments fall as well as rise in value, so you could get back less than you invest.

See Lifetime ISA investment ideas

Learn more about Lifetime ISAs

When can I take money out of my Lifetime ISA?

You can withdraw your money tax free when you’re ready to use it for an eligible house purchase (worth up to £450,000), after you turn 60, or if you are terminally ill. The Lifetime ISA must be opened for 12 months from the date of the first payment.

You can take money out at other times too (including in the first 12 months), but there will usually be a 25% charge from the government. This could mean you get back less than you put in.
What is an eligible house purchase for a Lifetime

You’ll need to have had your Lifetime ISA for a full year, and you’ll need to be a first-time buyer.

The house you’re buying has to be in the UK and cost £450,000 or less. This is just the house price and it doesn’t include fixtures and fittings. It also needs to be your main residence. If it’s still being built, it’ll need to be your main residence as soon as it’s ready for you to live in.

You’ll need to be buying the house with a mortgage, regulated home purchase plan or through a shared ownership arrangement. If you’re buying a house with cash, you can still use your Lifetime ISA money. But you’d have to pay the government withdrawal charge, which means you could get back less than you put in.
Who qualifies as a first-time buyer?

Your Lifetime ISA is opened from the date you pay money into it – either with a lump sum, direct debit or from a transfer. Direct debit is on the 7th, or the next working day, each month.
How and when do I get the government bonus?

We claim the government bonus for you and add it to your Lifetime ISA. We’ll do this as soon as possible each month and you should see it in your account in four to nine weeks from the date of your contribution. Please note, the bonus will be added to your Lifetime ISA as cash and you can just place your investment instruction when you’re ready. This can be easily done online, over the phone or in writing.
Can I open a Lifetime ISA if I already have other ISAs?

Yes, you can open and add money to other types of ISAs (Cash ISAs, Stocks and Shares ISAs or Innovative Finance ISAs) alongside your Lifetime ISA. You’ll only be able to save into one Lifetime ISA each tax year.

You can contribute up to £20,000 across all your ISAs in the 2022/23 tax year, with up to £4,000 in your Lifetime ISA. The government bonus doesn’t count towards the £20,000 overall limit or the £4,000 Lifetime ISA limit.

View all Lifetime ISA FAQs

Consistent and reliable approach. When I came to use my Lifetime ISA to purchase my first home, the information and service I received couldn't have been better

MR CALLOW, Oxford

Awards

BEST ISA PROVIDER 2021
Money Age Awards

BEST INVESTMENT PLATFORM 2021
Your Money Awards

BEST BUY ISA 2022
Boring Money Best Buys Awards

Help and support

If you have any questions about the HL Lifetime ISA, you can speak to one of our client support experts by calling 0117 900 9000.