Lifetime ISA — 25% Government Bonus, up to £1,000/Year Free

Overview

A Lifetime ISA (LISA) lets 18–39 year-olds save up to £4,000 a year towards a first home or retirement, with the government adding a 25% bonus — up to £1,000 free every year. You open it with a bank or investment provider and the bonus is paid monthly.

How to Claim

1. Click the link on this page to read the official GOV.UK Lifetime ISA guidance.
2. Choose a provider — a cash LISA for low-risk saving, or a stocks & shares LISA for investing — and open an account (you must be 18–39).
3. Pay in up to £4,000 per tax year.
4. The government adds 25% automatically each month.

Requirements

• Aged 18–39 to open (you can keep paying in until you turn 50).
• UK resident.
• £4,000/year limit, which counts toward your overall £20,000 annual ISA allowance.

Important Terms

• 25% bonus = up to £1,000 a year free money.
• Penalty-free withdrawals only for a first home (up to £450,000, bought with a mortgage through a conveyancer or solicitor), from age 60 for retirement, or if you're terminally ill.
• Withdraw for any other reason and you pay a 25% government charge — which can leave you with slightly less than you put in.
• For a first home, the purchase must be at least 12 months after your first payment.
• The government plans to replace the Lifetime ISA with a new First Time Buyer ISA from April 2028. You can still open a Lifetime ISA until then, and existing accounts can keep being paid into under the current rules.

Tips

• Saving for a first home in the next few years? A cash LISA is low-risk free money.
• Open one with even £1 before you turn 40 to "start the clock" for future use.
• Don't pay in money you might need for other purposes, because of the withdrawal charge.