Should I be using a Lifetime ISA?

The bonus is real. You can pay in up to £4,000 a year, and the government adds 25% on top, up to £1,000 a year. You have to open the account between 18 and 39.

To use it for a first home without a charge, a few conditions apply. The property has to cost £450,000 or less. You need to buy at least 12 months after your first payment in. And you need a conveyancer or solicitor, because the money goes straight to them.

If you take money out for any other reason, there's a 25% withdrawal charge. Because that's 25% of the whole amount, including the bonus, you lose more than the bonus you were given. That's the part people miss.

The cap matters most where prices are high. First-time buyer stamp duty relief runs up to £500,000, so it's possible to qualify for stamp duty relief and still be over the Lifetime ISA limit.

Changes to the Lifetime ISA were reported in the Budget on 28 October 2026. We'll update this page once HM Treasury publishes the detail.

Where this information comes from

• Pay in up to £4,000 a year. The government adds 25%, up to £1,000 a year.

  Source: GOV.UK, Lifetime ISA. Checked 28 October 2026.

• You must be 18 or over and under 40 to open one.

  Source: GOV.UK, Lifetime ISA. Checked 28 October 2026.

• For a first home: the property must cost £450,000 or less, you must buy at least 12 months after your first payment, and a conveyancer or solicitor must act for you.

  Source: GOV.UK, Lifetime ISA. Checked 28 October 2026.

• Withdrawals for any other reason carry a 25% charge.

  Source: GOV.UK, Lifetime ISA. Checked 28 October 2026.

• First-time buyer stamp duty relief isn't available above £500,000.

  Source: GOV.UK, Stamp Duty Land Tax: residential property rates. Checked 28 October 2026.