HMRC wrapper passport
ISA Managers Guidance LISA BONUS WRAP
#5/5 · £4,000 · 25% bonus
According to gov.uk Individual Savings Accounts guidance and HMRC ISA Manager Guidance Notes (2026/27 tax year). See methodology for full sourcing.
- HIT home / 60+
- EXIT 25% charge
- NEST 20% pot
- BOOK 5 wraps
- PHOTO JISA
Nearest allowance peer: JISA (£9,000)
According to PlainISA's HMRC ISA wrappers corpus, Lifetime ISA ranks #5 of 5 HMRC ISA wrappers by annual subscription allowance (highest GBP = #1) and #1 of 5 by HMRC government bonus value (highest bonus_cap_gbp, £0 when none = #1). This wrapper uses 20% of the £20,000 combined adult allowance. Best fit: First-home buyers under £450k cap (18-39), retirement supplement under 50. Not ideal for: Emergency fund, access before 60 without first-home. How we place wrappers → · Verify with HMRC →
LISA in the allowance neighbourhood
Annual subscription limit among this wrapper and nearest nationwide peers
Rules at a glance
| Attribute | Lifetime ISA | Source |
|---|---|---|
| Annual allowance | £4,000 - Sub-limit within £20k overall cap | gov.uk ISAs |
| Government bonus | 25% on contributions, up to £1,000/year | HMRC ISA Manual |
| Age eligibility | 18-39 open | HMRC ISA Manager Guidance |
| Risk band | varies | FCA Conduct of Business |
| Typical return | varies by holding | Per underlying holding |
| FSCS protection | Protected up to £85,000 per banking authorisation | FSCS |
| Withdrawal rules | Penalty-free: first-home (<=£450k), age 60+, terminal illness. Otherwise 25% government charge. | HMRC ISA Manual |
| Transfer rules | LISA to other ISA: 25% charge unless qualifying. Other to LISA counts vs £4k sub-limit. | HMRC ISA Manual |
| Tax treatment | Interest, dividends, capital gains exempt from UK Income Tax and CGT | Income Tax Act 2007 s.694 |
Table sources: gov.uk Individual Savings Accounts, HMRC ISA Managers Guidance Notes, Income Tax Act 2007 s.694.
Smaller-limit neighbours of Lifetime ISA
Lifetime ISA carries an HMRC top-up (bonus rank #1/5). Peer sets below separate the £4,000 subscription neighbours from the bonus-cap neighbours.
Similar annual allowance
Nearest wrappers by £4,000 subscription limit.
Similar HMRC bonus cap
Nearest wrappers by government bonus cap value (£1,000/yr here).
Peers are nearest-neighbor matches across all 5 HMRC ISA wrappers in this database; corpus ranks above sort the full set.
Not financial advice - methodology · compare wrappers · HMRC source.