Government drops LISA exit charge for scheme's first year

Tom Ellis
clock • 1 min read

The government has decided to drop the 5% withdrawal penalty charge on the Lifetime ISA (LISA) for savers exiting the scheme in its first year.

The LISA will allow those aged between 18 and 40 to open an account and save up to £4,000 a year until age 50 and access the savings either to buy a first house or help fund their retirement. Contributions into the savings scheme will receive a government bonus of 25%, however savers will lose their government bonues and incur a 5% exit charge if they access their LISA savings outside of the qualifying life events. The Treasury has predicted 800,000 savers will contribute to LISAs by 2020/21. Tax Incentivised Savings Association (TISA) director general David Dalton-Brown (pictured) wel...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

FCA takes civil action against Neil Woodford and W4.0 for 'operating without authorisation'

FCA takes civil action against Neil Woodford and W4.0 for 'operating without authorisation'

Accused of breaching FSMA

Michael Nelson
clock 08 June 2026 • 2 min read
M&G's PruFund coming to Scottish Widows Platform

M&G's PruFund coming to Scottish Widows Platform

First third-party platform launch

Jen Frost
clock 08 June 2026 • 2 min read
Investors move from cash to US equities as confidence improves

Investors move from cash to US equities as confidence improves

Investment Association figures show

clock 05 June 2026 • 3 min read