Lifetime ISA exit charges more than triple during lockdown

FOI request

Sophie King
clock • 2 min read

Lifetime ISA (LISA) early withdrawal charges more than tripled in a year, a Freedom of Information (FOI) request submitted by Quilter has revealed.

In the tax year 2019/20, early withdrawal charges came to just £10m, compared to £33m for the year 2020/21. Over the previous three tax years, £48m has been collectively levied against LISA holders for early withdrawals. However, only a small portion of that For 2018/19 and 2019/20 the withdrawal charges were set at 25% before being dropped to 20% from March last year to April 2021. This was to help people impacted by the pandemic to access funds; the temporary reduction of withdrawal charges meant account holders would only have to pay back the 25% government bonus they received. Howeve...

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

Risk Warning Review plans aim to address 'negative framing' of investing

Risk Warning Review plans aim to address 'negative framing' of investing

Lowest investment rate in G7

Alex Sebastian
clock 09 April 2026 • 2 min read
Equity fund outflows hit £1.44bn during war-torn March

Equity fund outflows hit £1.44bn during war-torn March

Calastone Fund Flow index shows

Professional Adviser
clock 09 April 2026 • 2 min read
Quality investing: Holding conviction when markets test investors

Quality investing: Holding conviction when markets test investors

Quality investors have no doubt had their conviction 'severely tested' of late

Scott Spencer
clock 31 March 2026 • 5 min read