Lifetime ISA penalties sting more than 150,000 savers

The number of people making unauthorised withdrawals in the tax year 2025/26 hit 154,100 and triggered almost £119m in withdrawal charges.  This compares to a record 99,750 people who used a LISA to purchase their first home – a difference of more than 50,000 people stung by the exit charge. The average unauthorised withdrawal was just £3,088. Quilter tax and financial planning expert Rachael Griffin said this suggested many of those making unauthorised withdrawals "are savers who started putting money aside for a home before finding their circumstances had changed and now need acc...