Answers · UK 2025/26
How much can I put in a LISA each year?
You can pay in up to £4,000 into a Lifetime ISA each tax year and the government adds a 25% bonus — up to £1,000 free per year. The £4,000 counts toward the overall £20,000 annual ISA allowance. Eligible savers must be aged 18-39 when opening, and contributions stop at age 50.
Full answer
The Lifetime ISA (LISA), launched in April 2017, gives a 25% government bonus on contributions of up to £4,000 a year. Bonuses are paid monthly on the previous month's contributions and credited to the LISA, where they earn interest or investment growth. Maximum bonus from age 18 to 50 = 32 years × £1,000 = £32,000. The £4,000 sits inside the overall £20,000 ISA allowance, leaving £16,000 for cash, stocks & shares or innovative-finance ISAs. Funds can be withdrawn tax-free for: (1) buying a first home up to £450,000 (anywhere in the UK), after the LISA has been open at least 12 months, used through a conveyancer; (2) age 60 or over for any purpose; (3) terminal illness diagnosis. Any other withdrawal triggers a 25% penalty — which removes the bonus AND a slice of your own money. Example: £4,000 contribution + £1,000 bonus = £5,000. Withdraw £5,000 early: 25% × £5,000 = £1,250 penalty, leaving £3,750 (loss of £250 of your own funds). Only one LISA can be active per provider each tax year; you can transfer between providers. Self-employed savers often pair a LISA with a SIPP for the first-home and retirement use cases.
Try the calculator
More answers
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.