Annual account charges
Your annual charge depends on whether you hold funds or shares in your Lifetime ISA. There are no charges for opening an account, holding cash or inactivity.
You can see the interest rates paid on any cash held in a Lifetime ISA here.
Funds
| Value of funds | Charge |
| On the first £1m | 0.25% |
| On the value between £1m - £2m | 0.1% |
| On the value over £2m | No charge |
Shares
Including UK and overseas shares, investment trusts, exchange-traded funds, VCTs, gilts and bonds.
0.25%
capped at £45 per year
Important note about charges
The investments you choose may have their own charges, for example charges from a particular fund manager. These are in addition to our account charges. You can find these in each investment’s key investor information document. A bid/offer spread may also apply - see our Guide to Fund Prices for details.
Example of account charges
If you invest £3,000 in funds and £1,000 in shares, your charges would be £0.83 per month*.
£3,000 in funds
Annual charge (0.25%)
£7.50
£1,000 in shares
Annual charge (0.25%)
£2.50
Total charge
Annual charge (0.25%)
£10
(£0.83 per month)
*The monthly charge will depend on the exact value of your account each month. To keep things simple here, we didn't include any investment growth.
Dealing charges
Fund dealing
There's no dealing charge for buying or selling funds.
Online and mobile app share dealing
including UK and overseas shares*, investment trusts, exchange-traded funds, gilts and bonds.
| Number of deals in previous month | Charge per deal |
| 0 - 9 | £11.95 |
| 10 - 19 | £8.95 |
| 20+ | £5.95 |
*There’s an added foreign exchange charge for overseas share deals, depending on deal size. See our overseas share dealing page for details.
Automatic reinvestment
If you’d like any share income automatically reinvested, we’ll reinvest your income when it reaches £10 per holding or the amount you choose. There’s no charge for this.
How to pay charges
There’s no need to remember to make any payments. Each month we’ll automatically take charges from cash in your account.
If there’s not enough cash in your account, we’ll sell some of your investments to cover charges. There is no additional charge for this.
How much cash you need to keep available in your account depends on your investments. We’ll suggest a minimum cash amount for you, which you’ll be able to see in your account when you log in.
Other charges
- Government taxes and levies (per deal)
| UK Stamp Duty | 0.5% on purchases of UK shares (round up to the nearest £5 for residual shares) |
| PTM (Panel on Takeover and Mergers) | £1 on UK share deals over £10,000 |
| Irish Stamp Duty | 1% on purchases of Irish shares |
| French Financial Transactions Tax | 0.3% on purchases of certain French shares |
| Spanish Financial Transactions Tax | 0.2% on purchases of certain Spanish shares |
| Italian Financial Transactions Tax | 0.1% on purchases of certain Italian shares |
- Telephone share dealing
1% of the trade value, minimum charge £20, maximum £50.
- Direct Debit into investments
You can set up a Direct Debit from £25 per month. There’s no charge for a Direct Debit into funds, shares and selected investment trusts and exchange-traded funds (ETFs).
- Account administration
Made in addition to the charges above, where applicable
| Cash withdrawals | No charge |
| Account closure fee | No charge |
| Automated sales to cover charges
(selling fund units or shares to cover fees) | No charge |
| Quarterly statement and valuation (paperless) | No charge |
| Quarterly statement and valuation (paper) | No charge |
- Transfers
| Transfer out (as cash) | No charge |
| Transfer out (as stock) | No charge |
Other charges may apply in specific circ*mstances - see the terms and conditions for details.
Charges FAQs
What if there’s not enough cash in my account to pay charges?
If you don’t have enough cash in your Lifetime ISA to pay charges, we’ll debit your charges from your HL Fund and Share Account, if you have one.
If there’s not enough cash to pay charges in your Lifetime ISA or Fund and Share Account, we’ll sell some of your Lifetime ISA investments to cover charges, starting with the units from your largest fund holding. There is no additional charge for this.
For more details, please see our help and support section on collecting charges.
What if I've reached the full Lifetime ISA allowance and can’t top up?
If there’s not enough cash in your Lifetime ISA to pay charges and you can’t top up, you can add money to an HL Fund and Share Account instead. We’ll take your charges there instead of selling your Lifetime ISA investments.
How much interest do I earn on cash in my Lifetime ISA?
It’s important to keep some cash available in your ISA for paying charges. You can also hold cash while deciding where to invest.
See our cash interest rates page for details.
FAQs
You'll pay a 25% charge if you withdraw money or transfer the Lifetime ISA to another type of ISA before 60. If you die your Lifetime ISA ends on the date of your death. There's no charge to withdraw the funds or assets from your account. A Lifetime ISA is one of a number of ways to save for later life.
What are the pitfalls of the lifetime ISA? ›
Disadvantages
- Usage restrictions: The LISA is limited to first home purchases or retirement, with penalties for other withdrawals.
- Contribution cap: The annual limit is £4,000, which may not be sufficient for all savers.
- Penalties: A 25% penalty for non-qualified withdrawals can be harsh.
What happens if I reach my Lifetime ISA allowance for the tax year? Once you've used your full £4,000 LISA allowance, any subsequent Direct Debit contributions intended for your LISA pot will be redirected to "Unallocated Cash", awaiting your instruction. You'll then be prompted to allocate your cash.
Is it worth getting a lifetime ISA? ›
Stocks and shares lifetime ISAs are best for people looking to grow their money over the medium or long term, so are more suited to people looking to withdraw their money after they are 60 or if they're not planning to buy a home for several years.
What is the penalty fee for Lisa? ›
If you withdraw from your Lifetime ISA for any other reason, you'll pay a 25% penalty fee on the amount withdrawn. So you need to be sure that you can afford to make the investments or you could lose out.
What is the 12 month rule for lifetime ISA? ›
The withdrawal must be at least 12 months after the first subscription into the Lifetime ISA. This 12 month period applies to each Lifetime ISA account that an individual opens and equally applies to funds transferred from a Help to Buy: ISA.
What is the US equivalent of a lifetime ISA? ›
There is a similar structure in the U.S., namely the Roth IRA, which has similar benefits to an ISA. All contributions grow free from income and capital gains tax and in addition, there are no taxes or penalties if you want to take out the capital you have put in (excluding income and gains).
What are the disadvantages of Moneybox Lifetime ISA? ›
Lifetime ISA cons
Your LISA isn't counted as open until you make your first deposit. If you withdraw money for any reason other than buying your first home (up to £450,000) or retirement, you'll pay a government charge of 25% on the amount you withdraw. This means you'll get back less than you've put in.
What happens to my Lisa if I move abroad? ›
You have to tell your LISA provider that you're no longer a UK resident. While you're away, you can keep your LISA open, and all the money you have in there (bonus, investments and all) will stay where it is, but any other payments will be on pause.
ISA Lisa better than a pension? ›
If you're self-employed and pay a higher rate of tax a pension is likely to be more tax efficient. If you're self-employed and a basic rate taxpayer, you should consider saving into a LISA. This is because you won't have the benefit of any employer pension contributions to help boost your retirement savings.
You can save up to £4,000 a year in a LISA as a lump sum or by putting in cash when you can.
What is the best fixed rate Lisa? ›
These are the cash Lifetime ISAs offering the best interest rates:
- Tembo Lifetime ISA (4.3%) Minimum investment – £1. Interest paid – Monthly. ...
- Moneybox Lifetime ISA (5% incl. 12 month 1% bonus) ...
- Beehive Money Lifetime ISA (3.5%) Minimum investment – £1. ...
- Skipton Building Society Lifetime ISA (3.25%) Minimum investment – £1.
- Trading 212. Account: Cash ISA. Notice: None. Rate: 5.20% AER. Transfers In: Cash ISA, Stocks and Shares ISA, Cash APS ISA, Stocks and Shares APS ISA. ...
- Plum. Account: Plum Cash ISA. Notice: None. Rate: 5.17% AER (Includes a bonus) ...
- Chip. Account: Chip Cash ISA (powered by ClearBank) Notice: None. Rate: 5.10% AER.
You can hold multiple Lifetime ISAs, although you can only pay into one each tax year.
What is the annual charge for an ISA? ›
The annual charge for holding investments in an HL Stocks and Shares ISA is never more than 0.45%. Your dealing and other charges will depend on the investments you choose. Stocks and Shares ISAs let you invest for the long term. But you could also receive interest on any cash that's held in your ISA.
How is lifetime ISA taxed? ›
You can save up to £4,000 a year, and can continue to pay into it until you reach 50. The account can stay open after then, but you can't make any more payments into it. Your savings will be kept on a tax-free basis for as long as you keep the money in your Lifetime ISA .
How is lifetime ISA paid? ›
How is the Lifetime ISA bonus paid? The Lifetime ISA government bonus is paid as cash directly into your Lifetime ISA, so you're able to invest it straight away. You'll receive your bonus automatically, four to ten weeks after you pay into your account.
