Lifetime ISA 25% Bonus 2027 Calculator
Lifetime ISA: open one aged 18 to 39, pay in up to £4,000 a year until you are 50, and the government adds a 25% bonus (up to £1,000 a year). Withdraw without charge to buy a first home costing £450,000 or less, or from age 60. Other withdrawals carry a 25% charge. Rules shown are those published for 2026/27; nothing different has been announced for 2027.
How the 25% Bonus Works
You can put in up to £4,000 each year until you are 50, and you must make your first payment before you are 40. The government adds 25% to what you pay in, up to a maximum of £1,000 per year. The £4,000 counts towards your annual ISA limit, which is £20,000 for 2026 to 2027.
First Home Limit £450,000
You can use the savings and bonus to buy your first home if the property costs £450,000 or less, you buy at least 12 months after your first payment into the Lifetime ISA, you use a conveyancer or solicitor, and you buy with a mortgage.
Withdrawal Charge
You can withdraw without charge when buying a first home, at age 60 or over, or if terminally ill with less than 12 months to live. Any other withdrawal carries a 25% charge on the amount withdrawn. Example: £4,000 paid in becomes £5,000 with the bonus; withdrawing £5,000 costs £1,250 and leaves £3,750, which is £250 (6.25%) less than you paid in.
Source and Disclaimer
The calculator adds contributions and bonus only; it does not project interest or investment growth.
Source: GOV.UK — Lifetime ISA. Last updated: October 2026.