You can use the individual savings account Lifetime ISA to buy your first home or start saving money for later years of life. To open an account, you must be 18 years old or older, but less than 40 years old.
Up to when you are 50 years old, you can transfer to an account up to £4000 a year. The government will add to your savings a bonus of 25%, up to a maximum of £1,000 per year.
Limit Lifetime ISA at £4,000 goes to your annual limit of individual savings account. For the 2017 -2018 tax year this amount is £20 thousand.
On the Lifetime ISA account, you can have money or shares (or both).
When withdrawing funds from the account, a 25% commission is charged. It does not apply if:
you buy your first home;
you are 60 or more years old;
you are terminally ill, and you have less than 12 months to live.
When you turn 50, you cannot make payments to Lifetime ISA or get a 25% bonus. At the same time, your account will remain open, and your deposits will continue to bring you interest.
To open and continue to put money on the Lifetime ISA, you must live in the UK, unless you are a civil servant (for example, in the diplomatic service) or a spouse or civil partner of a person in public service.