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Lifetime ISA fund withdrawals

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The Treasury has announced a change to the lifetime ISA (LISA) rules to make sure individuals who need to access their funds can do so without charge.

The withdrawal charge will temporarily be reduced from 25% to 20% for unauthorised withdrawals (i.e. those not used for the purchase of a first home) in the period between 6 March 2020 and 5 April 2021, meaning account holders will receive 100% of their savings less the government bonus. The usual additional 5% charge will not apply during the period. The change will be legislated shortly, and amounts withdrawn on or after 6 March will be corrected retrospectively, according to HMRC’s guidance

Issue: 1486
Categories: News