Lifetime ISA (LISA) Bonus Calculator 2026

A Lifetime ISA (LISA) lets you save up to £4,000 per tax year and receive a 25% government bonus (up to £1,000/year). You can use it to buy your first home or as retirement savings from age 60.

UK residents aged 18–39. You must open the account before your 40th birthday, though you can continue contributing until age 50.

25% of whatever you save, up to £4,000 per year. Maximum bonus is £1,000 per year. The bonus is added monthly and is itself eligible for further growth.

Yes — for your first home purchase only, on a property worth £450,000 or less. You must use the LISA to buy with a mortgage (not cash purchase). You must have held the LISA for at least 12 months.

A 25% withdrawal penalty applies (effectively taking back the government bonus plus some of your savings). This was temporarily reduced to 20% during COVID but returned to 25%.

Yes — they are separate schemes. Help to Save is for those on certain benefits; LISA is open to any 18-39 year old in employment.

Yes. The £4,000 LISA contribution counts within your overall £20,000 annual ISA allowance. You can hold both a Stocks & Shares ISA and a LISA in the same year.

Yes — the LISA is tax-free on withdrawal from age 60, making it a tax-efficient supplement to a pension, especially for self-employed people without employer contributions.

You'll face the 25% withdrawal charge unless it's used for a qualifying home purchase or after age 60 (or terminal illness). Emergency access incurs a penalty.

Yes. Most banks and investment platforms offer both types. Cash LISAs earn interest; Stocks & Shares LISAs have growth potential but also risk.

You must never have owned property anywhere in the world. Joint purchase: all buyers must be first-time buyers to use their respective LISAs.

Yes, you can transfer existing Help to Buy ISA savings into a LISA without it counting towards your £4,000 LISA annual subscription limit.