Policy paper

Individual Savings Accounts: Lifetime ISA

This Tax Information and Impact Note establishes a new tax-advantaged savings account, the Lifetime ISA from 6 April 2017.

Documents

Details

UK resident adults under the age of 40 will usually be eligible to open a Lifetime ISA.

Account holders will be able to save up to £4,000 each tax year in their Lifetime ISA until they reach 50, and amounts they pay into their account will be eligible for a 25% government bonus.

Account holders can withdraw their Lifetime ISA savings at any time, but from 6 April 2018 any withdrawals made other than in specified circumstances (such as when the account holder reaches 60, is withdrawing their savings for a first-time residential purchase or is terminally ill) will be subject to a 25% charge.

Published 22 February 2017