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Lifetime ISA - frequently asked questions

Can a Lifetime ISA be used for any other purpose besides buying a home or retirement?

The Lifetime ISA is designed for first-time homebuyers or retirement savings. Withdrawing funds for any other reason will be subject to a 25% government charge. The 25% government penalty charge won't apply if you're terminally ill.

What are the rules for using a Lifetime ISA to help buy a home?

You need to have been contributing for at least a year.  It must be your first home and be valued at £450,000 or less. 

I already have an ISA – can I still contribute towards a Lifetime ISA?

Yes, you can open and contribute towards other ISAs in addition to your Lifetime ISA. You can contribute up to £{{currentIsaAllowance}} across all your ISAs in the {{currentTaxYear}} tax year, with up to £{{currentLifetimeIsaAllowance}} of this in your Lifetime ISA. 

How and when will the government bonus get added to the Lifetime ISA?

The bonus payment is calculated on a monthly basis. We'll claim this for you as soon as possible each month and it should be paid into your account directly within 4-9 weeks of your contribution. 

What if I want to withdraw funds from my Lifetime ISA? Are there any penalties?

Withdrawing funds from your Lifetime ISA for any other reason besides home purchases, retirement or terminal illness/death will incur a 25% government charge on the amount you're withdrawing.  This means you may get back less than what you put in.

Can my partner and I contribute towards a joint Lifetime ISA?

You can only have one Lifetime ISA in your name. If your partner is a first-time buyer as well, they can open their own Lifetime ISA. You could then both use your Lifetime ISAs and government bonus towards your first home. The house price shouldn't exceed £450,000.

Can I pay into both a Lifetime ISA and a Help to Buy ISA?

Yes, you can pay into both a Help to Buy ISA and a Lifetime ISA at the same time. However, you'll only be able to use the government bonus from one of the accounts to buy your first home.

Can I transfer my existing ISAs into a Lifetime ISA?

Yes, you can transfer existing ISAs into a Lifetime ISA and benefit from the government bonus. Any transfers won't count towards the overall ISA allowance (£{{currentIsaAllowance}}) but will count towards your Lifetime ISA allowance for the year (£{{currentLifetimeIsaAllowance}}).

Can I transfer my Lifetime ISA into any other ISAs?

Yes, you can but this will incur the 25% government penalty charge.