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 ...
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