What is a Lifetime ISA?

A Lifetime ISA, also known as a LISA, is a type of individual savings account (ISA) available to UK residents aged 18 to 39. You can invest up to £4,000 into a LISA each year and the government will add a 25% bonus up to a maximum of £1,000 per year. In addition, any profits made on investments in your ISA are not subject to capital gains tax (CGT).

A LISA must be opened before your 40th birthday, but you can continue to invest and receive the 25% government bonus until your 50th birthday.

Any contributions made to your LISA forms part of your annual ISA allowance of £20,000 per tax year.

- Submitted on 29th Feb 2020

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