Policy paper
Lifetime ISA withdrawal charge
This tax information and impact note explains the reduced Lifetime ISA withdrawal charge for first-time buyers purchasing a property above the property price cap.
Documents
Details
The change will apply to relevant Lifetime ISA withdrawals made on or after 29 October 2026.
It will allow affected savers to retain their own contributions while removing the government bonus. The 25% charge will continue to apply to other unauthorised withdrawals.