|Age criteria.||Anyone over the age of 18 (over 16 for cash ISAs)||Anyone aged between 18 and 40||Anyone under 18.|
|£20,000||£4,000. The amount paid into a LISA counts towards the account-holder’s ISA allowance.||£4,128|
|Bonus||None||The government adds a bonus of 25% to the amount paid in each year until the account holder turns 50.||None|
|Conditions||You do not have to keep an ISA for a specific duration, although some accounts have a fixed or minimum term.||Account holders can continue paying in until they are 50. They can use the money at any time as a deposit for their first home costing less than £450,000. They can withdraw money for retirement purposes at age 60.||The child can take control of the account when they reach the age of 16 but can’t withdraw the money until they are 18.|
Transfer savings or investments you have
If you have investments or savings that are not already tax-efficient you should consider cashing them in and transferring the proceeds into an ISA. However, it is essential to consult a professional financial adviser before you do so.
One ISA every tax year
You can take out one ISA every tax year, so if you don’t take out an ISA by 5 April 2018 you will lose the opportunity to shelter up to £20,000 from tax. The allowance applies to all adults resident in the UK for tax purposes, so a couple can shelter up to £40,000 from tax in this tax year.