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Lifetime ISA Withdrawal Charge Reduced


Lifetime ISA Withdrawal Charge Reduced

To help investors withdraw funds from their Lifetime ISA during the coronavirus pandemic the withdrawal charge has been temporarily reduced from 25% to 20%.

The reduced withdrawal charge applies to all unauthorised withdrawals.

This change applies from Friday 6 March 2020 until 11:59pm Monday 5 April 2021. A withdrawal charge does not apply when a withdrawal is made to buy a first home or the investor has a terminal illness.

This means that Lifetime ISA investors will only lose the government bonus earned on the amount they withdraw.

The temporary reduction of the LISA withdrawal charge to 20% will end on 5 April 2021. 

On 6 April 2021, the Lifetime ISA withdrawal charge will go back to 25%.

Find out more Here.

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