
Lifetime ISA
Get a 25% government bonus with this year’s £4,000 Lifetime ISA allowance
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 personal advice - please ask us for financial advice if you’re not sure which investments are right for you. Lifetime 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 for later life 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.
In this video, we explain the key benefits of using a Lifetime ISA and how you can invest for your future or first home.
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% bonus 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 Lifetime ISA
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.
HL Lifetime ISA charges
We’ve cut our annual account charge to 0.25%, so that more of what you pay in can help towards your goals. Other charges still apply.
Lifetime ISA investment options
- Ready-made investments
- 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 investment ideas could provide some inspiration. Remember investments fall as well as rise in value, so you could get back less than you invest.

How to open a Lifetime ISA
Once you've decided to invest in a Lifetime ISA, it takes less than five minutes to get started. You'll just need a debit card and your national insurance number to hand. Remember that your investments can go down as well as up in value, so you may get back less than you invest.
Two simple ways to start a Lifetime ISA
Open a Lifetime ISA with a lump sum
Get started with a lump sum from as little as £100.
- Make a one-off debit card payment and top up whenever you like
- Choose from a range of investments when you’re ready
- Ideas and support to help you get off to a great start
Set up a Direct Debit
Pay into a Lifetime ISA from £25 each month.
- Invest automatically each month
- Start, stop, increase or decrease your Direct Debit whenever you like
- Ideas and support to help you get off to a great start
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
Online Stockbroker 2022/2023 from the Personal Finance Awards, and Best
Buy Lifetime ISA
2023 by Boring Money Best Buys Awards
-
UK-based helpdesk - speak to our client support experts if you have any
questions
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



Learn more about Lifetime ISAs
Established leader in the field that I consider to be reliable.
MR LOCKWOOD, West Sussex
Awards
SHARE DEALING CATEGORY 2023
Finder Customer Satisfaction Awards
BEST BUY ISA 2023
Boring Money Best Buys Awards
BEST BUY LIFETIME ISA 2023
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.