Answers · UK 2025/26

How much government bonus do I get if I pay £4,000 into a Lifetime ISA?

£1,000 a year. The Lifetime ISA pays a 25% government bonus on contributions up to the £4,000 annual limit, so paying in the full £4,000 earns £1,000, taking your balance to £5,000 before any investment growth or interest.

Last updated: 10 June 2026Last reviewed: 10 June 2026How we verify

Full answer

The Lifetime ISA (LISA) is for those aged 18 to 39 saving for a first home or for later life. You can pay in up to £4,000 each tax year until age 50, and the government adds a 25% bonus on what you put in. Worked example: pay in the full £4,000 and you receive a £1,000 bonus, giving £5,000 of capital that then grows tax-free as cash or investments. Over several years the bonuses compound: £4,000 a year for 10 years is £40,000 of your own money plus £10,000 in bonuses, before any growth. The £4,000 counts toward your overall £20,000 ISA allowance, so paying the LISA maximum leaves £16,000 for other ISAs. Withdrawals are penalty-free only when buying a first home worth up to £450,000, from age 60, or if terminally ill. Any other withdrawal triggers a 25% government charge, which claws back the bonus and a little of your own money: take out £5,000 early and the 25% charge is £1,250, leaving £3,750, so you get back less than the £4,000 you put in. The bonus is paid monthly by HMRC and starts to earn returns itself. Use the Lifetime ISA calculator to project the bonus and growth, and the help-to-buy-isa calculator if comparing older schemes. For eligibility and the withdrawal charge rules, check gov.uk.