Lifetime ISA
Get a 25% government bonus on what you pay in
Save for your first home or retirement with the UK’s #1 investment and savings platform
Before you invest in a Lifetime ISA: investing for 5+ years increases your chances of positive returns compared to cash savings. But investments rise and fall in value, so you could get back less than you put in. You’re responsible for your investment decisions. Tax benefits depend on circumstances and rules can change. Withdrawal restrictions apply to Lifetime ISAs.
What is a Lifetime ISA?
A Lifetime ISA is an account you can use to buy your first home or save for retirement. 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.
Save tax
Invest up to £4,000 each tax year, free from UK income and capital gains tax.
Get up to £1,000 bonus
Make the most of a 25% government bonus each year. That’s £1 for every £4 you save.
Boost potential returns
Investments should provide higher returns than cash over the long term.
Say hello to the HL Lifetime ISA
Open or top up a Lifetime ISA from £100 lump sum, or £25 a month via Direct Debit.
Pick your own investments or choose from ready-made options
Earn interest on any uninvested cash
Speak to our UK-based helpdesk if you have any questions
Manage your Lifetime ISA on the go with our mobile app
Buy your first home
You can use a Lifetime ISA to help you get your foot on the housing ladder.
Your savings can be used to purchase an eligible property (worth up to £450,000), at least 12 months after your first payment into the account.
Find out more about using a Lifetime ISA to buy your first home
Save for retirement
You can use a Lifetime ISA to supplement your pension in later life. Withdrawals are tax free from age 60.
If you save into a Lifetime ISA instead of a pension, you could miss out on employer contributions, and your entitlement to certain means-tested state benefits could be affected.
Is a Lifetime ISA right for you?
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.
The £4,000 Lifetime ISA allowance makes up part of your overall £20,000 ISA allowance.
Consider a Lifetime ISA if:
You’re comfortable with the withdrawal restrictions. If you want to take money out before you turn 60 and you aren't buying your first home, there's usually a 25% government charge. This means you could get back less than you put in.
You’re clear on the differences between saving and investing and you have your own cash savings to cover emergencies.
You understand the value of your investments will rise and fall, so you could get back less than you invest. If you’re planning to use your Lifetime ISA to purchase your first home in the next five years, investing might not be the best option.
This isn’t personal advice. If you’re not sure a Lifetime ISA is right for you, ask for financial advice.
Your Lifetime ISA investment options
Pick your own investments
Your Lifetime ISA, your choice
Choose from funds, UK and overseas shares, investment trusts, bonds, exchange-traded funds (ETFs) and more.
Leave it to our experts
Ready-made investments
All-in-one investment options, created by our team of experts.
Lifetime ISA charges
0.25%
Our Lifetime ISA is free to set up. The annual account charge is no more than 0.25% for holding investments. Some investments will have their own annual charges.
Buying and selling funds is free. Dealing charges apply to other investments, such as shares and ETFs.
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Our clients trust us with over £155bn of their savings and investments.
Over 40 years experience
We’ve been helping people to save and invest for a better future since 1981.
Award-winning service
Over 200 awards, including 'Best Investment App' and 'Best Lifetime ISA' for 2024.
Your chance to win £50,000
Open or top up an HL Lifetime ISA with at least £3,500 and we'll automatically enter you into our prize draw to win one of two £50,000 cash prizes.
Offer applies to contributions made between 10 February and 5 April 2025. You'll need to keep the qualifying amount in your account until 20 May 2025. Offer ends 5 April 2025.
FAQs
Common questions about Lifetime ISAs.
You can withdraw your money tax free for an eligible house purchase (worth up to £450,000), after you turn 60, or if you’re terminally ill. The Lifetime ISA must be open 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.
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.
We automatically 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 four to nine weeks from the date of your contribution. The bonus will be added to your Lifetime ISA as cash. You can place any investment instructions when you’re ready.
Yes, you can open and add money to different 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 current 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.
Join the UK’s #1 investment and savings platform
Open or top up a Lifetime ISA from £100 lump sum, or £25 a month.
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