The new Lifetime Individual Savings Account (LISA) is launched today, the 6th April 2017. This new ISA offers a bonus of 25% on savings for those who are under forty years old. The savings account can be used towards home purchase or retirement
Here are the key facts about the Lifetime ISA
- The Lifetime ISA (LISA) will be available for those aged between 18 and 40 years of age.
- You can save as little or as much as you wish to up to the annual limit of £4,000.
- Any savings you put into it before your 50th birthday will receive an added bonus of 25% from the government.
- The 25% bonus is paid annually at the end of year tax year until you are fifty.
- Your savings and the bonus can be used towards a deposit on a first home worth up to £450,000.
- As the LISA accounts are one per person, rather than one per home, two first-time buyers can each receive a bonus when buying together.
- If you have a Help to Buy ISA, the savings in that can be transferred into the LISA during 2017.
- If your aim is saving for retirement, you can take out all your savings, tax-free, after your 60th birthday.
- You can withdraw money before you are 60, but you will lose the bonus and will also have to pay a 5% surcharge.
- You will also have to pay a 5% charge.
Peter Anstee from Anstee & Co said-
“Any help the government can give to help people buy a home or prepare for retirement is good news. I would recommend that you take professional independent advice before taking out a new LISA to ensure that it meets your savings goals.”
How we can help you with the new LISA.
If you’d like to know more about the Lifetime ISA and how it might benefit you contact the team here at Anstee & Co. We have office in Kettering, Stamford and London. Also meeting rooms in Warwick and Bedford. The first meeting is at our expenses. This can be arranged at a time and location that is convenient to you. Including your home.