If I pay in £1600 over 5 years would I still get the government top up to the total?
14 October 2022
Question by Naurice
If I open a lifetime ISA now before I turn 40, with £4000 in this tax period, but next tax year, say I don’t save £4000 and decide to pay in £0 for that tax year. Then resume payments of £4000 for the next 3 years. So effectively I will pay in £1600 over 5 years would I still get the government top up to the total of £4000 ending my ISA with the full £20,000 or would it be less?
Answered by Boring Money
Hello,
Your ISA allowance of £20,000 is PER TAX YEAR - it is not a TOTAL.
Each year you save into a LISA, you will receive tax relief from the government.
Hope that helps.
Oliver
