Definition of lifetime Isa

Lifetime ISAs are introduced from April 2017 and adults under the age of 40 can make annual contributions of up to £4,000 per annum. Contributions made before the age of 50 qualify for a 25% bonus from the Government, up to a maximum cumulative bonus of £32,000. Funds can be used to purchase a first home after the first anniversary of the opening of the account, or can be used to save for retirement. [1]

Money saved into a Lisa would not be taxed when it was drawn down as retirement income. [2]