The Lifetime ISA
Lesson 3 of 12 in our free Buying a Home guide: a 5-minute money game with the key points below.
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Questions you'll answer
Mo puts £2,000 into a LISA this tax year. How much bonus does the government add?
Mo paid in £1,000 and got a £250 bonus (£1,250 total). Mo withdraws it all for a holiday. After the 25% charge, how much does Mo get back?
Who is a LISA LEAST likely to suit?
Quick facts
- Fact: “A LISA must be open for at least 12 months before you can use it to buy a first home.” — Open it early — even with a small amount — to start the clock.
- Myth: “You can use a LISA for any home, at any price.” — First homes only, costing £450,000 or less.
- Fact: “LISA payments count towards your overall £20,000 ISA allowance.” — The £4,000 LISA limit sits inside the £20,000 total.