How much government bonus does a LISA give?

25% on up to £4,000 per year — worth up to £1,000/year. The maximum total bonus over a lifetime (32 years of contributions from 18 to 50) is £33,000.

What is the property price limit for using a LISA?

£450,000. Your first home must cost £450,000 or less for the LISA bonus to be used. The property must be in the UK and bought with a mortgage.

Can I use a LISA and Help to Buy ISA?

Help to Buy ISAs are closed to new applicants. If you already have one, you can transfer it to a LISA. You can only use one of them — not both — for the bonus on a home purchase.

Tax Law

Lifetime ISA (LISA) Calculator 2026 — Government Bonus for First Home & Retirement

A Lifetime ISA gives you a 25% government bonus on up to £4,000 you save each year — worth up to £1,000/year. You can use it to buy your first home (up to £450,000) or as retirement savings. Check how much your LISA will be worth.

🏠 Lifetime ISA (LISA) Calculator — 2026

25% government bonus on up to £4,000/year. Must be opened before age 40. Available until age 50.

Your current ageMust be 18–39 to open. Can contribute until age 50.

How are you using the LISA?

Annual contribution (£, up to £4,000)

Expected annual growth rate (%)

LISA Rules — Key Facts

Must be 18–39 to open a Lifetime ISA
Can contribute up to £4,000/year and receive a 25% bonus (up to £1,000/year) until age 50
Maximum total government bonus: £33,000 (32 years of full contributions)
For home purchases: the property must cost £450,000 or less, you must be a first-time buyer, and you must have held the LISA for at least 12 months
For retirement: you can access the money from age 60 — fully tax-free
Unauthorised withdrawals incur a 25% penalty charge
The £4,000 LISA limit counts towards your overall annual ISA allowance (£20,000)

LISA vs Help to Buy ISA vs Standard ISA

The Lifetime ISA replaced the Help to Buy ISA for new applicants back in 2019 (existing Help to Buy ISA holders could keep saving into theirs until November 2029). The two schemes work quite differently: a Help to Buy ISA paid its bonus only at completion of a property purchase and had a lower monthly contribution limit, while a LISA pays its 25% bonus annually as you save, can be used for retirement as well as a first home, and allows a much larger £4,000 per year contribution. If you're choosing between a LISA and a standard Stocks & Shares or Cash ISA purely for a house deposit, the LISA's 25% government top-up makes it the stronger option in almost all cases — provided you're confident you'll use the money for a qualifying purchase or wait until 60, since early withdrawal for any other reason triggers the 25% penalty.

What Counts as a "First Home" for LISA Purposes

To use your LISA savings and bonus towards a property, several conditions must all be met: you must be a first-time buyer who has never owned a property (or part of one) anywhere in the world, including inherited shares of a property; the property must be in the UK; you must intend to live in it as your main residence rather than buy it to let; the purchase price must be £450,000 or less; and you must use a conveyancer or solicitor to handle the transaction, since they submit the withdrawal request directly to your LISA provider. If you're buying with a partner who is also a first-time buyer, you can each use your own LISA towards the same property, potentially combining two lots of bonus.

Can I have both a LISA and a Help to Buy ISA?+

You can hold both, but you can only use the government bonus from one of them towards a house purchase — not both. If you have an existing Help to Buy ISA, you can transfer its balance into a LISA (this doesn't count towards your annual LISA contribution limit), or keep contributing to the Help to Buy ISA separately and simply decide which bonus to claim when you buy.

What if I withdraw money from my LISA for something other than a first home or retirement?+

You'll pay a 25% government withdrawal charge on the amount taken out. Because the charge is 25% of the total withdrawal (not just the bonus portion), this actually claws back slightly more than the 25% bonus you received — so an unauthorised withdrawal leaves you with less than you originally paid in. The one exception is a terminal illness diagnosis, in which case funds can be withdrawn penalty-free regardless of age.

Can I use a LISA if my partner already owns a home?+

No. Both buyers must be first-time buyers to use the LISA bonus for a property purchase. If your partner already owns or has owned a home, you cannot use your LISA for that joint purchase. You could still use your LISA for retirement savings, but the home purchase bonus would not be available.

Is a LISA better than a pension?+

It depends. A LISA bonus is 25% (effectively tax-relief at 20%). A pension gives tax relief at your marginal rate (20%, 40%, or 45%), plus employer contributions through auto-enrolment. For basic rate taxpayers with employer matching, a workplace pension is usually better. The LISA is most valuable as a supplement for first-time buyers, or for the self-employed without employer pension contributions.

What happens to my LISA if I never buy a home and I die before 60?+

On death, the LISA can be closed without the withdrawal penalty — the full balance including the government bonus is paid to your estate. This is an exemption to the usual penalty for unauthorised withdrawals.