Glossary · Savings
Lifetime ISA (LISA)
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Definition: A tax-free savings account for 18–39-year-olds, paying a 25% government bonus on contributions of up to £4,000 a year (so up to £1,000 bonus).
The funds can be used for a first home (up to £450,000) or accessed from age 60. Other withdrawals incur a 25% charge that effectively returns more than the bonus. LISA contributions count towards the £20,000 ISA allowance.
Primary source: gov.uk/lifetime-isa