Lifetime ISA

Step forward the new Lifetime ISA!

You can save money in a tax free environment, up to £4,000 each year, and receive a government bonus of 25% – that’s a bonus of up to £1,000 a year. You can use some or all of the money to buy your first home, or keep it until you’re 60 – it’s up to you.

  • You can open a Lifetime ISA account between the ages of 18 and 40, and

  • Any savings you put into it before your 50th birthday will receive an added 25% bonus from the government

  • Accounts will be available from April 2017

  • You can save as little or as much as you want each month, up to £4,000 a year

  • The total amount you can save each year into all ISAs will also be increased from £15,240 to £20,000 from April 2017

But...

  • If you withdraw the money before your 60th birthday you will lose the bonus and an interest/growth on this.

  • A further 5% penalty charge will also have to be paid so consider any withdrawals carefully.

  • They are also limited to one account per person.

  • The £4,000 is part of the total annual limit of £20,000.

We like it when the tax man gives us money, so if you’re saving for your first home, or want to bolster your retirement savings, come and talk to us!

InvestmentsMalcolm Wallace