Lifetime ISAs (LISAs) provide 25% bonus on savings, but withdrawal rules are strict. Understanding them prevents costly mistakes.
When You Can Withdraw Penalty-Free
You can withdraw without penalty for: buying your first home (up to £450,000), reaching age 60, or terminal illness. Any other withdrawal incurs a 25% penalty.
- First home purchase (up to £450k)
- Age 60+
- Terminal illness
The Penalty
Withdrawing for any other reason costs 25% of the withdrawn amount. This means you lose your government bonus plus a penalty on your own contributions.
Can I transfer my LISA?
Yes, you can transfer to another LISA provider without penalty. You can also transfer to a different type of ISA (but lose 25% bonus).
- LISA
- lifetime ISA
- withdrawal
- penalty
- UK