LISA Mathsthe bonus, the charge, and the cap

Lifetime ISA rules, 2026/27

The rules that decide whether a Lifetime ISA is worth opening at all, quoted from GOV.UK and nothing else. Read 19 August 2026, for the 2026/27 tax year.

Age to open18 to 39
Pay in until50
Maximum a year£4,000
Bonus25%, up to £1,000 a year
Counts towardthe £20,000 ISA allowance
Property cap£450,000
Minimum time held before a house purchase 12 months
Unauthorised withdrawal charge25% (6.25% of your own money)
Who can open a Lifetime ISA?

18 to 39 — you must make your first payment before you turn 40.

How long can I keep paying in?

Until you turn 50. The account stays open and keeps any growth after that, but no further payments and no further bonus.

When can I take the money out without a charge?

Buying your first home at £450,000 or less with a mortgage, at least 12 months after your first payment; reaching age 60; or terminal illness with less than 12 months to live.

What about the Help to Buy ISA?

Closed to new savers. Existing holders can pay in up to £200 a month until November 2029 and must claim the bonus by November 2030.

Can I have a LISA and other ISAs?

Yes. The £4,000 LISA limit sits inside the overall £20,000 ISA allowance, so paying the LISA maximum leaves £16,000 for cash, stocks-and-shares and innovative finance ISAs combined.

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The arithmetic

Rates and limits read 19 August 2026 from GOV.UK: Lifetime ISA, withdrawing money and ISA allowances. Figures are for the 2026/27 tax year.

Rates and limits for the 2026/27 tax year, read 19 August 2026 from GOV.UK. Nothing here is financial advice: it is arithmetic on published rules, and no investment return is assumed anywhere.