Draft legislation: Lifetime ISA

This draft legislation amending the Individual Savings Account (ISA) Regulations to establish Lifetime ISA, includes rules in relation to the government bonus payable on Lifetime ISA savings and withdrawals from accounts.

This technical consultation will be of interest to ISA investors, potential providers of Lifetime ISA, and conveyancers acting for individuals purchasing their first home.

It is intended that these regulations, which are being published in draft for consultation, will amend the ISA Regulations (S.I.1998/1870) from 6 April 2017 to establish Lifetime ISA, including the rules in relation to the government bonus and withdrawals from accounts. The draft regulations will also increase the overall ISA limit from £15,240 to £20,000 from 6 April 2017.

HM Revenue and Customs has published draft regulations together with a draft explanatory memorandum for a period of technical consultation, which will close on 6 January 2017.

Lifetime ISA was first announced at Budget 2016:

Any comments on these draft regulations should be sent by email to: savings.audit@hmrc.gsi.gov.uk