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,...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
