Once you’ve successfully opened a Lifetime ISA (LISA), for every contribution you make up to the £4,000 annual allowance, you’ll automatically receive a 25% government bonus.
|As with all investing, your capital is at risk. A Lifetime ISA may not be right for everyone and tax rules may change in the future. If you are unsure if a Lifetime ISA is the right choice for you, please seek independent financial advice.|
I’ve contributed to my Lifetime ISA, when will I receive the government bonus?
The government bonus is paid on a monthly basis. Bonus payments will be calculated on a month by month basis and claimed for you from the government automatically.
The bonus period runs from the 6th of each month to the 5th of the following month.
If you do not make a contribution to your Lifetime ISA during a bonus period, you will not receive a bonus for that period.
If you make a contribution that arrives and is cleared in your account between the 1st and 5th of the month
You’ll receive the bonus at the end of the same month.
If you make a contribution that arrives and is cleared in your account after the 6th of the month
You’ll receive the bonus at the end of the following month.
Do I need to do anything to receive the bonus?
No. Once your Lifetime ISA application is successful, each month we contact HMRC and claim the bonus for the previous period’s contributions on your behalf.
Once we receive your bonus from HMRC, we will invest it into your Lifetime ISA pot at the next twice-weekly investing cycle.
Do I have to contribute each month?
No. You can contribute up to £4,000 and make payments as and when you like. There is no minimum monthly contribution requirement to the LISA.
Do I have to pay tax on the 25% government bonus?
No. Lifetime ISAs are tax-free savings accounts, which means you will not have to pay any capital gains tax or income tax on the money inside them - including the 25% government bonus.
I’m transferring my LISA from Nutmeg to a new provider, what happens with my bonus?
Check out our Transferring your LISA page for more information.