Answers · UK 2025/26
Can I open a Lifetime ISA at 40?
No. You must be aged 18 to 39 to open a Lifetime ISA. Once opened before your 40th birthday you can keep paying in up to £4,000 a year (with the 25% bonus) until age 50. If you have already turned 40 without one, the LISA is no longer available to you.
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Lifetime ISAs (LISAs) were introduced in April 2017 to help under-40s save for a first home or retirement. Eligibility to open: aged 18 to 39 (the day before your 40th birthday is the last day). Contributions: up to £4,000 per tax year, attracting a 25% government bonus of up to £1,000 a year. The £4,000 counts towards the overall £20,000 ISA allowance. You can keep paying in and receiving the bonus until age 50, after which contributions stop but the pot continues to grow tax-free. Withdrawals are penalty-free only if used to buy a first home worth up to £450,000, after age 60, or if you are terminally ill. Any other withdrawal incurs a 25% government charge, which effectively returns the bonus and takes 6.25% of your own money. If you are already 40, consider a Stocks & Shares ISA or topping up a SIPP instead.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.