The new Lifetime ISA, or ‘LISA’, due to be launched in April 2017, was one of George Osborne’s surprise announcements in March 2016.
The Financial Times suggested at the time it was announced that the LISA could provide a pension pot for the under 40s of almost £700,000. That’s a very attractive savings plan in a financial climate that isn’t particularly saver-friendly. Now it has been released, what are the realities of the LISA? What is a LISA? Simply speaking, the LISA is a tax free ISA that can be started by 18 – 40 year olds. A maximum amount of £4000 per year can be invested, either as cash or as investments (the value of which, of course, can go down as well as up), and the returns are tax free. Read More