The Lifetime ISA (LISA)
From 6th April 2017, adults under the age of 40 (up to the day of their 40th birthday) can open a LISA.
The key details are:
You are able to pay in up to £4,000 each tax year up to the age of 50.
The government will add a 25% bonus to these contributions at the end of the tax year, so those who save the maximum amount will receive a £1,000 bonus each year from the government.
These tax-free funds, including the government bonus, can be used to help buy a first home worth up to £450,000 at any time from 12 months after first saving into the account.
Alternatively, funds can be withdrawn from the LISA from age 60 tax-free for any purpose.
We have prepared this 2 page technical guide ‘Lifetime ISA‘ to give you further information.
Please do not hesitate to contact us, should you require any further information or would like to discuss the suitability of a LISA in your circumstances.
This communication is for general information only and is not intended to be individual advice. It represents our understanding of law and HM Revenue & Customs practice as at 07.04.2017. You are recommended to seek competent professional advice before taking any action.