Can I withdraw my money at any time?
There is a 25% government charge if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement. If you withdraw for a house purchase before your account has been open for 12 months, you will also be subject to the government penalty. Your LISA counts as ‘open’ once you’ve made your first contribution.
This 25% penalty means that if you deposit £1,000, you get the 25% govt. bonus = £1,250. If you make a withdrawal and 25% was taken off, you’d receive £937.50, which is a 6.25% loss. Please note this does not take into account investment gains/losses and fees.
If you’d like to withdraw from your Lifetime ISA for a reason other than a qualifying house purchase or retirement after age 60, please get in touch with the team via the in-app chat, or email us at firstname.lastname@example.org.