Lifetime ISA 25% Bonus 2027 Calculator
Lifetime ISA (LISA): UK savers aged 18-39 contribute up to £4,000/year and receive 25% government bonus (£1,000 max). Funds usable for first home (up to £450K) or after age 60. Withdrawals for other reasons trigger 25% penalty — net loss ≈6.25%.
How the 25% Bonus Works
HMRC pays £0.25 for every £1 contributed (up to £4K/year). Bonus paid monthly. Max bonus £1,000/year. Continue until age 50.
First Home Cap £450,000
Bonus applied to property purchase only if home costs £450K or less. London exception: same £450K (controversial — many London homes exceed).
Withdrawal Penalty
25% of withdrawal amount, not just bonus. £5,000 withdrawn → £1,250 penalty + you keep £3,750. Net loss vs original £4K contribution = 6.25%.
Source and Disclaimer
gov.uk Lifetime ISA guidance. Open through banks/building societies. Verify ISA rules annually as Budget changes possible.
Source: gov.uk/lifetime-isa. Last updated: May 2026.