Lifetime ISA: 25% government bonus, up to £1,000 a year

If you are 18 or over but under 40, you can open a Lifetime ISA and pay in up to £4,000 each tax year. The government adds a 25% bonus, up to £1,000 a year. Pay in before 5 April to use this year's limit.

Deadline

Every year by 5 April

Last checked

Checked against the official source: 21 October 2026

What if you miss the deadline? You must make your first payment before you turn 40. Payments after 5 April count towards the next tax year.

A Lifetime ISA helps you save for your first home or for later life. You can pay in up to £4,000 each tax year until you are 50, and the government adds a 25% bonus. The £4,000 counts towards your £20,000 ISA allowance.

How to do it

1. Make sure you are 18 or over, under 40 and resident in the UK.
2. Choose a provider and open a cash or stocks and shares Lifetime ISA.
3. Make your first payment before your 40th birthday.
4. Pay in up to £4,000 before 5 April to get the full bonus for that tax year.
5. Read the withdrawal rules on GOV.UK. Taking money out for other reasons usually means a charge.

Common questions

How much bonus do I get on a Lifetime ISA?

25% of what you pay in, up to £1,000 a year if you pay in the full £4,000.

Until what age can I pay in?

Until you are 50. After that you cannot pay in or get the bonus.

Can I have more than one Lifetime ISA?

You can only pay into one Lifetime ISA in a tax year.

Is the Lifetime ISA being replaced?

The government has consulted on replacing it with a new First Time Buyer ISA. You can still open a Lifetime ISA now. Check GOV.UK for the latest rules before you open one.

Official source: gov.uk (opens in a new tab)

This information is not legal or tax advice.