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 拢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.

Updates to this page

Published 22 February 2017

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