LISA (Lifetime ISA)
An ISA for first homes or retirement, with a £4,000 limit and a 25% government bonus.
The Lifetime ISA lets UK residents aged 18 to 39 pay in up to £4,000 a year (within the overall £20,000 ISA allowance), with HMRC adding a 25% bonus, up to £1,000 a year. You can keep contributing and receiving the bonus until age 50. Funds can be withdrawn tax-free either to buy a first home worth up to £450,000 or from age 60 onwards. Any other withdrawal triggers a 25% government charge, which wipes out the bonus and a bit more besides. LISAs come in cash or stocks and shares flavours, with providers including AJ Bell, Hargreaves Lansdown, and Moneybox.
Inside Finlo
A 60-second lesson that puts this term in context, alongside the others, lives inside the Finlo app.