Budget 26: LISA penalty reform promised for property purchases over £450,000

From midnight 29 October 2026 the withdrawal charge for purchases of properties above the LISA property price cap of £450,000 will be reduced to 20%. The charge for unauthorised withdrawals will remain at 25%. More LISA holders have lost a part of their original savings than have used it to purchase a house, according to data from HMRC. 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 mor...