Financial Advice
Regulated
We are authorised and regulated by the Financial Conduct Authority.
Protected
Assets are protected by the Financial Services Compensation Scheme.
Trusted
We are authorised and regulated by the Financial Conduct Authority.

What is a Lifetime ISA?

A Lifetime ISA (LISA) is a tax-efficient savings and investment account that encourages millennials to put money aside for their first home or retirement.

By saving or investing up to £4,000 in a Lifetime ISA each tax year, the government pledges a 25% bonus or for every £4 contribution, a top up of £1 to a maximum of £1,000.

A Lifetime ISA allows a range of different investment funds, investment trusts, government gilts, corporate bonds and cash.
Using your Lifetime ISA

Using your Lifetime ISA

  • A Lifetime ISA may be used either to buy your first home up to a value of £450,000 or when you’re 60, to use as you like.
Things to think about...

Things to think about...

  • So long as an account has been opened and a contribution made before 40, any UK resident aged between 18 and 39 can open a Lifetime ISA and continue making contributions until the age of 50.
  • The government pays the bonus on contributions made from the 6th of each month to the 5th of the next month.
  • You can only access your Lifetime ISA to buy your first home, when you’re over 60 years old or if you are terminally ill.
  • When buying your first home, a period of 12 months must have elapsed since the first contribution before making a withdrawal from the Lifetime ISA.
  • But beware! If you access the Lifetime ISA for any other reason than given above, the government will charge you a hefty 25% penalty on the total value of the amount withdrawn meaning you may get back less than you put in.
  • It is possible to have a Lifetime ISA with a Stocks and Shares ISA (or a Cash ISA) so long as the combined amount does not exceed the maximum £20,000 ISA allowance in the current tax year.
  • If you’re not buying your first home, you need to be sure that you don’t need access to the Lifetime ISA before you’re 60. If you’re unsure about this, there may be better investment and savings options available to you instead of a LISA.

How we work

We keep it straightforward and simple.

1  

Arrange a Lifestyle Planning Meeting

A meeting at our expense to identify where you are now, how you got to where you are now, and where you’re trying to get to in the next 5, 10 and 20 years and so on for the rest of your life; in other words, a Lifestyle Plan.

     
2  

Arrange a Financial Planning Meeting

Another meeting, again at our expense, to identify all the resources available to you now, resources that will become available in future, and most importantly resources that might have to become available to satisfy the needs of your Lifestyle Plan.

     
3  

Arrange an Implementation Meeting of your Financial Plan

If, and only if, your Financial Plan indicates that that your needs would be best served by a financial or investment product and service, it is at this point that a recommendation will be made, again at our expense. If you are happy to go ahead in full knowledge of the facts and the fees involved, we can then start to implement your Financial Plan. If you want to walk away at this point, no problem; we wish you well and it won’t have cost you anything.

     
4  

Arrange an Annual Forward Planning Meeting

Now on board as a Sutherland IFA fee-paying client, an annual meeting is held to make sure that your Lifestyle Plan and your Financial Plan are on track to meet your financial goals and objectives.

Let’s start a conversation

We welcome the opportunity to learn more about how we can help you. Schedule a free no-obligation consultation, you might be surprised!