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 much can I contribute?
You can contribute up to £4,000 each tax year 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.
Tax rules can change and their benefits depend on your circumstances. Lifetime ISA allowance forms part of the overall £20,000 annual allowance.
Contribute up to
£4,000
each tax year
each year and receive
a government bonus of
and receive a
government bonus of
25%
Taking money out
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 (20% if the withdrawal is made between 6 March 2020 and 5 April 2021). That means you could get back less than you originally put in.
Learn more about taking money from a Lifetime ISA in our Lifetime ISA FAQs
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.
Open an HL 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 with £100 or from as little as £25 per month.
You'll just need a debit card and your national insurance number to hand.
Want to transfer an existing ISA to us?
Just let us know and we'll take care of the rest.
Transfer an existing ISAYour investment options
- More than 2,500 funds
- UK and overseas shares
- Investment trusts, bonds and exchange-traded funds (ETFs)
You can also hold cash in your Lifetime ISA.
Looking for investment ideas?
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.
With investing, the potential returns are higher, though you can also make a loss.
Learn more about Lifetime ISAs
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 Direct Lifetime Stocks & Shares ISA Provider
YourMoney.com Awards