Government issues major update on Lifetime ISAs held by 1.5m Britons

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"The government has given a major update to anyone with a Lifetime ISA (LISA) after announcing plans to scrap them in the Autumn Budget. Held by more than 1.5 million people, the government-backed savings account, introduced in 2017, offers a unique savings rate' of 25 per cent, but can only be used to purchase a first home. Up to 4,000 a year can be deposited into a Lisa, to which the government will add a maximum of 1,000, equalling up to 5,000."

"There has been uncertainty around the product since the lead-up to November's Budget, and that has not entirely gone away with the government confirming it is launching consultations for a new, simpler product to take its place. But a recent update by HMRC has clarified plans. Most notably, people who already have a LISA can continue to pay into it indefinitely, using it to either buy a first home or for retirement, regardless of any new product hitting the market."

The Independent covers reproductive rights, climate change and Big Tech and produces documentaries such as 'The A Word'. The outlet seeks donations to fund journalists and avoids paywalls so reporting remains freely accessible. The government updated Lifetime ISAs (LISAs) after plans to scrap them in the Autumn Budget. More than 1.5 million people hold LISAs, introduced in 2017, offering a 25 per cent bonus, with up to £4,000 annual contributions and a £1,000 government bonus. HMRC clarified existing holders can continue contributing indefinitely and may use funds for a first home or retirement while consultations proceed on a simpler replacement product.

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