Lifetime ISA Rules and Limits
The Lifetime ISA adds a 25% government bonus to savings for a first home or later life. These are the limits, the age rules and the penalty for other withdrawals.
Annual Lifetime ISA limit
£4,000
Counts towards the overall £20,000 ISA allowance.
GOV.UK — HMRC · checked 30 Sep 2026
Government bonus
25%
Added to the money you pay in, not to interest or investment growth.
GOV.UK — HMRC · checked 30 Sep 2026
Must open before age
40 years
You must be 18 or over and under 40 to open a Lifetime ISA.
GOV.UK — HMRC · checked 30 Sep 2026
Payments and bonus stop at age
50 years
The account stays open after 50 and keeps earning interest or investment returns.
GOV.UK — HMRC · checked 30 Sep 2026
First-home price limit
£450,000
The home must cost this or less, be bought with a mortgage, and be bought at least 12 months after your first payment in.
GOV.UK — HMRC · checked 30 Sep 2026
Charge on other withdrawals
25%
Applies to withdrawals for any reason other than a first home, reaching 60, or terminal illness, and can leave you with less than you paid in.
GOV.UK — HMRC · checked 30 Sep 2026
Annual ISA allowance
£20,000
The Lifetime ISA's £4,000 limit sits inside this overall allowance.
GOV.UK — HMRC · checked 30 Sep 2026