First payroll-deducted Lifetime ISA launched

28 November 2018

Contributions to a Lifetime ISA (Individual Savings Account) can be made via payroll deductions on a ‘net pay’ basis, attracting a 25% bonus, irrespective of tax-paying status.

Savers can contribute up to £4,000 a year into a Lifetime ISA (LISA) from the age of 18 to 50 and rather than offering tax relief, savers get a 25 per cent contribution from the Government instead.

Corporate Adviser has reported that the Smarterly Lifetime ISA is believed to be the first available through payroll deduction, where employers have the option to make contributions on behalf of employees, as an additional savings vehicle to an employer-funded pension contribution.

The launch supports employers’ financial wellbeing programmes.