ISA basics
What is a Lifetime ISA and how does it work?
A simple overview of the Lifetime ISA (LISA), who can use it, and its main rules and purposes.
The short answer
A Lifetime ISA (LISA) is a tax-advantaged account for people aged 18 to 39 to save for a first home or retirement. You can contribute up to the annual LISA limit and receive a government bonus on eligible subscriptions. Conditions apply on withdrawals and using the funds for purposes other than a first home purchase or retirement may result in charges.
Main features
You may open a LISA if you meet the age criteria. The government pays a bonus on eligible subscriptions. Withdrawals for non-qualifying reasons are usually subject to a charge, which can be significant.
Action points
Check eligibility, contribution limits and whether a LISA fits your plans. If you are considering halal investing inside a LISA, the underlying investments and the product’s contractual terms still determine Shariah status.
What this means in practice
- 1Read the GOV.UK LISA guidance to confirm eligibility and rules.
- 2Decide whether you will use the LISA for a home purchase or for retirement.
- 3Before opening, check withdrawal conditions and any charges for early access.