What is the annual investment limit for a Lifetime ISA?

The annual investment limit for a Lifetime ISA is indeed £4,000. This specific allowance has been established to promote saving for first-time home purchases or for retirement. Contributions made to a Lifetime ISA are eligible for a government bonus of 25%, which further incentivizes investing within this limit.

Investors can put up to £4,000 each tax year into their Lifetime ISA, and this amount counts towards the overall annual ISA allowance. Utilizing a Lifetime ISA effectively allows individuals to save money for significant life milestones while benefiting from government contributions, making it a strategic option for long-term savings.