What is the lifetime ISA bonus?
Answered 11 March 2026
Based on the sources retrieved, the available materials contain only limited information specifically about the mechanics of the Lifetime ISA (LISA) bonus. Here is what can be confirmed from the sources found:
What the law says
The government bonus paid in respect of a Lifetime ISA is exempt from income tax — no liability to income tax arises in respect of a payment of, or in respect of, a government bonus under section 1 or 2 of the Savings (Government Contributions) Act 2017.
The Lifetime ISA was introduced from 6 April 2017.
HMRC guidance / practice
The government bonus paid in respect of a Lifetime ISA is also disregarded in full when calculating investment income for Tax Credits purposes.
Income from a Lifetime ISA (including any bonus) continues to be exempt for a deceased's estate for up to 3 years following death.
⚠️ Important limitation: The retrieved sources do not contain the specific details of the Lifetime ISA bonus rate (e.g. the 25% bonus on contributions up to £4,000 per year), eligibility conditions, or withdrawal charge rules. I could not find an authoritative source for those specific details in the available materials. For the full rules, you should consult the ISA managers' guidance published on GOV.UK or the Individual Savings Account Regulations 1998 (SI 1998/1870).
Citation sources
n 318A (childcare: limited exemption for other care) , or b it is a payment, or reimbursement of costs incurred by the claimant, in respect of pension advice and that payment or reimbursement is exempt from a charge to income tax under Chapter 9 of Part 4 of ITEPA. 10 A car’s CO 2 emissions figure is to be determined in accordance with sections 133 to 138 of ITEPA (cars: the appropriate percentage) . . 4 In regulation 10 (investment income) in Table 4 (payments to be disregarded in the calculati
The separate insurance Individual Savings Account (ISA) was abolished on 5 April 2005. Since 6 April 2005, provided certain conditions are met, life insurance policies can be held within the stocks and shares ISA, or, since 6 April 2017, within the Lifetime ISA. There is detailed information on ISAs in the ‘ISA managers’ guidance’ published on gov.uk. Insurers can find the guidance useful to check if a life insurance policy can be included in an investor’s ISA. The ISA Regulations themselves are
Part 6 Exempt income Chapter 9 Other income Other Government bonus for savings account or other investment plan 775A No liability to income tax arises in respect of a payment of, or in respect of, a government bonus under section 1 or 2 of the Savings (Government Contributions) Act 2017.
When calculating investment income, disregard the following: The whole amount of the government bonus paid in respect of a Lifetime Individual Savings Account (Lifetime ISA). The whole amount of the governement bonus paid in respect of a Help to Save account.
S664 defines that all (the aggregate) income received by the PRs is taken into account – after deductions. Unless it relates to a specific gift under the will (which becomes beneficially owned by the beneficiary on death and does not form part of the residuary estate). Some deemed income is not chargeable on the PRs but must be included in the income total: Stock dividends from UK companies Release of loans to participator in close company Some gains from contracts for life insurance S679 pro