Lifetime ISAs and the tax year: What you need to know
Anya GairIf you’ve got a Lifetime ISA, or are about to open one, understanding how the tax year impacts what you can put into your LISA is important to ensure you max out your free government bonus! Keep reading to find out how Lifetime ISA works in relation to the tax year, and how long you have till the tax year ends.
When is the tax year?
The UK tax year runs from 6 April to 5 April each year.
- The 2025/2026 tax year started on 6 April 2025
- It ends on Sunday 5 April 2026
- The 2026/2027 tax year begins on 6 April 2026
This matters for Lifetime ISAs because your annual contribution allowance resets at the start of each new tax year.
How much can you put into a Lifetime ISA each tax year?
You can save up to £4,000 in a Lifetime ISA each tax year. The government then adds a 25% bonus on top of what you save, up to £1,000 per tax year.
For example:
- Save £4,000 → get a £1,000 bonus
- Save £2,000 → get a £500 bonus
- Save £1,000 → get a £250 bonus
If you don’t manage to save the full £4,000 before the tax year ends, you’ll still receive 25% on whatever you contribute.
🚨 Make the most of your tax-free allowance! 🚨
If you’ve already saved £4,000 into your LISA, you still have £16,000 of tax-free ISA allowance left to use in other ISAs. Just make sure your total contributions across all ISAs stay within the £20,000 annual limit.
Do Lifetime ISA allowances carry over?
No - your Lifetime ISA allowance resets every tax year. This means any unused allowance doesn’t roll over into the next year.
For example:
- If you save £3,000 in the 2025/2026 tax year, you cannot add the remaining £1,000 to next year’s allowance.
- When the new tax year begins on 6 April 2026, you’ll have a fresh £4,000 allowance.
So topping up your LISA before the tax year ends is the only way to maximise this year’s government bonus.
When is the Lifetime ISA tax year deadline?
The 2025/2026 tax year ends on Sunday 5 April 2026.
For Tembo Lifetime ISA customers, the last time to transfer money into your LISA for this tax year is:
👉 6pm on Sunday 5 April 2026
Any contributions made after this time will count towards the 2026/2027 tax year instead.
We set this deadline slightly before midnight so we can make sure all payments are successfully processed and recorded before the tax year ends.
Is the Lifetime ISA bonus paid per tax year?
Lifetime ISA bonuses are paid monthly by HMRC. As long as your contributions are made before the tax year deadline, you’ll receive the same 25% government bonus for that tax year. Your bonus typically arrives 4–6 weeks after your contribution.
You might also like: When can I withdraw money from my Lifetime ISA?
Save for your first home with the market-leading Cash Lifetime ISA
Open a Tembo Lifetime ISA today with just £10 to benefit from our 5.00% AER (variable) interest rate, or transfer from another provider.
