Can I withdraw my money at any time?

There is a 20% government charge if you withdraw money for any reason other than buying your first home (up to £450,000) or for retirement. This means you will only lose the government bonus. Please note: this charge has been temporarily reduced to 20% between 6 March 2020 and 5 April 2021. After this period the withdrawal change will revert to 25%. This means that when you make a withdrawal, you will lose your government bonus, plus £6.25 for every £100 deposited (excluding investment gains/losses and fees for a Stocks & Shares Lifetime ISA).

Examples:

The standard Lifetime ISA withdrawal fee is 25%. So if you deposit £1,000, you get the 25% govt. bonus = £1,250. If you make a withdrawal and 25% was taken off, you’ll receive £937.50, which is a 6.25% loss. Please note this does not take into account any investment gains/losses and fees.

During the period of 6 March 2020 and 5 April 2021, the withdrawal charge is 20%. So if you deposit £1,000, you’ll get the same 25% govt. bonus = £1,250. If you make a withdrawal and 20% is taken off, you’ll receive £1,000. Please note this does not take into account any investment gains/losses and fees.