From April 2017, individuals between the ages of 18 and 40 will be able to open a Lifetime ISA (LISA) and save up to £4,000 a year. For savings made up to the age of 50, the Government will add a bonus of 25% of the amount saved. The savings and bonus can be used towards a deposit on a first home worth up to £450,000; two first-time buyers can each use their LISA when buying a home together. Alternatively, the accumulated savings can be taken out free of tax after the age of 60. Withdrawals will be possible before this age, but the bonus (together with interest and growth on this) will be lost and there will be a 5% charge.
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