Receive a 25% bonus towards your first home or lifetime savings
WHAT IS A LIFETIME ISA?
- Contribute up to £4,000 each year
- Receive a government bonus of up to £1,000 for every year you invest before your 50th birthday*
- Withdraw your money tax-free for the purpose of retirement from the age of 60 or earlier for the purchase of a first home (which must cost under £450,000)
- Invest for the long-term
WHY CHOOSE A LIFETIME ISA WITH KILLIK & CO?
WHO IS THE LIFETIME ISA RIGHT FOR?
LIFETIME ISA RULES
Buying your first home:
- Your first property must be located within the UK and must not cost more than £450,000
- The Lifetime ISA must have been opened for at least 12 months for you to receive any government bonus
- The bonus is per individual, so two individuals can combine their government bonus when buying together
- If you withdraw the money before you turn 60 and it is not to buy your first home then you will incur a 25% penalty on the total sum. This is payable to the government, unless you are diagnosed with a terminal illness or upon your death.
For your retirement:
- Withdraw the money tax free on or after your 60th birthday
- The Lifetime ISA can work alongside your pension. Compare the tax-efficient wrappers in our comparison below or watch our short video here
- If you withdraw the money before you turn 60 then you will incur a 25% penalty on the total sum. This is payable to the government, unless you are diagnosed with a terminal illness or upon your death
Lifetime ISA comparison
18 (adult ISA)
Opened from birth
39 to open, 49 to contribute
75 (for tax relief)
Basic rate tax relief on contributions @20%
Higher rate tax relief on contributions
Tax free growth within the wrapper
Government bonus on contributions @20%
Yes, capped at £1,000 per year, £32,000 total
First 25% only
Subject to conditions
From 55 (57 from 2028)
25% of total fund
25% or 55% (This charge is only payable on the value of the pension which is over and above the Lifetime Allowance of £1m)
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