Lifetime ISA (LISA) Rules 2024: Bonus, Age Limits & Withdrawal Penalties
The Lifetime ISA (LISA) offers a 25% government bonus on annual contributions up to £4,000, but strict rules apply. Here's a comprehensive guide to LISA regulations in 2024:
Key LISA Rules
- Age Limits: Open between 18-39 years old. No longer available to new applicants over 40.
- Annual Contribution Limit: £4,000 per year (cash or shares) with a maximum £1,000 government bonus.
- Government Bonus: Automatically added annually, up to 25% of contributions (capped at £1,000/year).
Withdrawal Rules & Penalties
| Withdrawal Type | Conditions | Penalty |
|---|---|---|
| First-time home purchase | Property must cost £450,000 or less | None |
| Retirement (age 60+) | Withdraw anytime after 60 | None |
| Other withdrawals | Before age 60 or non-qualifying home purchase | 25% government charge |
Strategies for First-Time Buyers
Combine LISA savings with Help to Buy schemes for maximum benefit. For example: Deposit + LISA funds + government bonus = reduced mortgage requirements.
Pro Tip: Use our ISA Allowance Calculator to track your LISA contributions and remaining annual allowance across all ISA types.