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An ISA where the government adds a 25% bonus to your savings, for a first home or retirement.
A Lifetime ISA is a UK savings account designed for two specific goals: buying your first home or saving for retirement. You can contribute up to £4,000 per year, and the government adds a 25% bonus (up to £1,000 per year). You must be 18–39 to open one, and funds can be used for a first home purchase (up to £450,000) or withdrawn tax-free from age 60. Early withdrawals for other purposes incur a 25% penalty.
This definition is for informational purposes only and does not constitute tax, legal, or financial advice. Rules may change and outcomes depend on your circumstances.
These GOV.UK and HMRC sources provide the official context for this glossary entry. The definition is educational and does not determine your individual tax position.