LISA bonuses to be paid monthly, Treasury confirms

The 25% LISA annual bonus was originally set to be awarded at the end of each tax year on savings up to £4,000 but will now be paid monthly with a view to preventing savers being penalised by the 25% early withdrawal charge. Savers will be hit with a 25% exit charge on their LISA if they withdraw outside of qualifying life events - buying a first home under £450,000, reaching the age of 60 or if diagnosed terminally ill - but the charge could have inadvertently been a lot more severe if the 25% government bonus had been awarded annually. Under the original proposals, explained Aegon pensi...