Lifetime ISA

Tax year end - ISA payment deadline.

Tax year falls over Easter weekend- so if you're using your 2020/21 ISA allowance you must pay into your Skipton ISA before:

  • Bank transfers - 5pm on Thursday 1 April.
  • Debit card over the phone (0345 850 1722) - closing time on Saturday 3 April.
  • Skipton Online or the Skipton App by debit card - 11pm on Monday 5 April.

Any payments received after these times may not be processed in time and might count towards your ISA allowance for the 2021/22 tax year.

Ways to pay in

Saving into a Lifetime ISA

If you are aged 18 to 39, you can open a Lifetime ISA and save up to £4,000 tax-free each year up to and including the day before your 50th birthday. The government will pay a 25% bonus on your contributions, up to a maximum of £1,000 a year.

Your Lifetime ISA allowance forms part of your overall £20,000 annual ISA allowance.

Any withdrawals within the first 12 months of your first payment into a Lifetime ISA will incur a 25% government charge, which would mean you would get back less than you paid in.

Please note between 6 March 2020 and 5 April 2021 the government withdrawal charge is 20%.

After 12 months of making your first payment, you can withdraw money to buy your first home, but if you withdraw for any other reason than that before you reach 60, the government withdrawal charge will apply (unless you're diagnosed with a terminal illness).

Find out more about the LISA withdrawal charges.

Ready to apply?

View full product details of our Lifetime ISA and apply online now

Apply now

Important things to think about

Some ISAs are flexible, which means you can withdraw and pay back in throughout the tax year without affecting your overall annual ISA allowance. However, Lifetime ISAs are not flexible, so it will not be possible for withdrawals to be made and replaced without affecting your annual Lifetime ISA allowance or your overall ISA allowance.

If you close your Lifetime ISA after you reach age 40 you won’t be able to open a new one. If you intend to use your Lifetime ISA savings towards buying your first home or to save towards retirement, you may wish to leave a small amount in the account so you can continue to save in it in future.

You can continue to pay into your Lifetime ISA up to the day before your 50th birthday and will gain a bonus of up to £10,000 if you pay in your full allowance each year between the ages of 40 and 49.

For example each year. You pay in up to £4000, the Government pays a 25% bonus up to £1000

How and when will your bonus be paid?

HMRC calculate bonus payments on a month-by-month basis:

Your payments in...

Your bonus is calculated on any payments you make into your account from the 6th of the month to the 5th of the following month inclusive.

...your government bonus

Your bonus will be paid into your account within 14 days of the 20th day of month two.

Using your Lifetime ISA

To buy your first home

We’ve pulled together what you need to know about using your Lifetime ISA to buy your first home.

Lifetime ISA for first time buyers

To help fund retirement

Using your Lifetime ISA to fund your retirement? We’ve put together what you need to know.

Lifetime ISA for retirement

Next steps

Frequently Asked Questions

Read our Lifetime ISA FAQs

Lifetime ISA FAQs

Speak to us

Call us on 0345 607 9755 or launch
Web Chat

Apply online

Find out more and apply for our Lifetime ISA

Apply online
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