How much LISA bonus could you get?
Amount you'd like to invest each year
Please enter a valid birth date. You must be between 18 and 39 years old to start a Lifetime ISA.
About this calculator: this calculator is an example - it doesn't show what your investments will actually be worth. Remember investments can go down as well as up in value so you could get back less than you put in. Tax rules can change and their benefits depend on your circumstances.
More about the Lifetime ISA rules and allowances
Once opened, you can contribute £4,000 each year up until the day before your 50th birthday and the government will add an extra 25% bonus – up to £1,000 each year.
What is the Lifetime ISA allowance?
What's the maximum government bonus I can receive each year?
The maximum bonus is £1,000 per year. The bonus is paid monthly. 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.
Lifetime ISA bonuses won't count towards either the £4,000 Lifetime ISA limit or the overall £20,000 ISA limit. Please remember that tax rules change and benefits depend on your individual circumstances.
Who is eligible to contribute to a Lifetime ISA?
If you're between 18 and 39 you can open a Lifetime ISA. And while you're under the age of 50 you can contribute up to £4,000 a year and receive an added 25% government bonus.
When can I withdraw from my Lifetime ISA?
You can withdraw the money for an eligible property purchase, after age 60 or if you are diagnosed with a terminal illness. If you withdraw the money at any other time you'll have to pay a 25% government withdrawal charge (20% if the withdrawal is made between 6 March 2020 and 5 April 2021).
If you pay a withdrawal charge this may mean you receive back less than you have invested. For example, you contribute £4,000 and receive a £1,000 bonus. You then withdraw this £5,000 and are subject to a £1,250 government withdrawal charge and get back £3,750.
For withdrawals made between 6 March 2020 and 5 April 2021 the withdrawal charge is 20%. In the example above that would mean the withdrawal charge was £1,000 and you would get back £4,000.
An eligible property purchase
Once your Lifetime ISA has been open for 12 months, you can use the money (including the government bonus) to buy your first home. Your first home must be in the UK and can cost up to £450,000. You'll need to be buying it using a mortgage or other regulated home purchase plan. If your Lifetime ISA has been open for less than 12 months, there will be a government withdrawal charge on the withdrawal.
You can also use a Lifetime ISA to save for your retirement and you can use the money without a government withdrawal charge after the age of 60. You can use your Lifetime ISA alongside other accounts (such as pensions) when saving for your retirement.
If you're thinking of opting out of your workplace pension to pay into a Lifetime ISA, just remember you won't benefit from any employer contributions and it may affect your current and future entitlement to means-tested state benefits.
During terminal ill health
If you are diagnosed with a terminal illness, you'll be allowed to withdraw money from your Lifetime ISA without paying any government withdrawal charge.