Individual Savings Accounts
The question
To ask the Chancellor of the Exchequer, if she will take steps to increase the age cap on the opening of Lifetime ISAs.
Answered by Lucy Rigby
On the Government LISA contribution, LISA holders can receive a generous 25% government bonus on contributions up to £4,000 per year. This means an individual who made the full contribution would receive a £1,000 bonus from the Government.
On the age limits, the LISA is designed to encourage younger people to get into the habit of saving for the longer-term. Individuals who did not open a LISA before the age of 40 are still able to save in another ISA type and benefit from the annual subscription limit of £20,000. They can also contribute to a pension, where their contributions will generally receive significant tax relief from the Government.
Those who opened a LISA before their 40th birthday can continue to subscribe until they are 50 and can continue managing their account beyond that date. This includes transferring the account to another LISA manager and changing their investment profile from cash to stocks and shares or vice versa.
The Government keeps all aspects of savings tax policy under review, and considers all representations made carefully, with any changes made as part of the Budget process.
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