Lifetime ISAs explained
Everything you need to know about Lifetime ISAs
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EQi explains
How to transfer
A step by step guide
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EQi explains
How to open and invest
Get started with a Lifetime ISA
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EQI EXPLAINS
How to withdraw
The rules around taking money out
What is a LISA?
A LISA is a form of Individual Savings Account, only available to UK residents who are aged between 18 and 39 to help people save for their first home or put money aside for their retirement.
The government will add a 25% bonus based on the contributions paid into the account each year. To secure the maximum £1,000 annual bonus, you will need to have paid in £4,000 each tax year.
Like other ISAs, any gains your investments make will be tax-free. A LISA forms part of your ISA overall annual allowance, which is currently £20,000 each tax year.
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Receive up to £1,000 each year
The government pays the bonus directly into your LISA, based on any payments you have made into your account. It’s calculated as 25% of the cash you have paid in.
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Example LISA scenario
You deposit £2,000 into your LISA. HMRC will add a £500 bonus, so you’ll have £2,500. The bonus is based on the amount of money you pay in, not the value of your investments. The bonus is paid into your account as cash and you can then decide where to invest it.
Investment Risk Warnings
The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.
EQi does not provide investment advice. If you are in any doubt as to the risk or suitability of an investment or product you should seek advice from an independent financial adviser.
The extent and value of any Lifetime ISA tax advantages or benefits will vary according to the individual's circumstances. The government bonus may also change. Once in the LISA your money is only accessible, in general, when you buy your first home or at age 60. If you withdraw early from your Lifetime ISA the withdrawal penalty will be 25% of the amount withdrawn.
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Can parents open a LISA for their children or grandchildren?
You can’t open a LISA on a child’s behalf, but once they open the account themselves, you can gift them money to deposit into their LISA.
Will I have to pay tax?
You won’t pay tax on any income or capital gains from investments held within a LISA and, if you complete a tax return, you do not need to declare any LISA interest, income or capital gains.
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WHY EQI?
Our LISA fee is Competitive
Benefit from our market-leading custody fee of 0.2% per annum on holdings in your account
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Why EQi?
Free for existing EQi customers
If you have an EQi ISA, SIPP or dealing account (paying the usual £17.49 quarterly custody fee), your Lifetime ISA will be free
Building your Lifetime ISA portfolio
Insights
Temporary change to the LISA withdrawal rule
Will the Lifetime ISA be a lifesaver?
Using diversification to defend your investments
Breaking down investment jargon
How can investing be responsible?
Five places to invest your money
How to be a successful DIY investor
Lifetime ISA or pension?
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Insights04.05.20
Temporary change to the LISA withdrawal rule
Insights17.03.20Will the Lifetime ISA be a lifesaver?
insights06.02.19Using diversification to defend your investments
-
insights18.03.20
Breaking down investment jargon
EQi explainsHow can investing be responsible?
insights20.09.18Five places to invest your money
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Insights
How to be a successful DIY investor
Insights03.10.17Lifetime ISA or pension?