LISAs on track for April 2017 launch as Savings Bill introduced

Government to give 25% bonus to Lifetime ISA savers

Tom Ellis
clock • 3 min read

The announcement of the Savings (Government Contributions) Bill in the House of Commons has confirmed the plans for the Lifetime ISA (LISA) are due to come into force on 1 April 2017.

People under the age of 40 will be able to open a LISA and contribute up to £4,000 a year until they reach the age of 50. The government will provide a 25% bonus on savers' annual contributions at the end of each tax year. LISA savers will be able to use their savings and government bonus to buy a house of up to £450,000 or choose to withdraw some or all of the savings tax-free over the age of 60 for any purpose. Hargreaves Lansdown head of retirement policy Tom McPhail (pictured) said: "While we are happy the government is pressing ahead and has chosen not to delay the Lifetime ISA, we ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Measure for measure: How to track your tracker fund

Measure for measure: How to track your tracker fund

Tracking difference and tracking error

Terry McGivern
clock 28 January 2026 • 3 min read
SJP and AJ Bell pivot from US mega-caps in MPS as concentration woes continue

SJP and AJ Bell pivot from US mega-caps in MPS as concentration woes continue

Healthcare, energy and EM preferred

Linus Uhlig
clock 28 January 2026 • 2 min read
Wealth managers turn to private markets to offset geopolitical risks

Wealth managers turn to private markets to offset geopolitical risks

60% allocation in 2025

Patrick Brusnahan
clock 26 January 2026 • 1 min read