Lifetime ISA (LISA) early withdrawal charges more than tripled in a year, a Freedom of Information (FOI) request submitted by Quilter has revealed.
In the tax year 2019/20, early withdrawal charges came to just £10m, compared to £33m for the year 2020/21. Over the previous three tax years, £48m has been collectively levied against LISA holders for early withdrawals. However, only a small portion of that For 2018/19 and 2019/20 the withdrawal charges were set at 25% before being dropped to 20% from March last year to April 2021. This was to help people impacted by the pandemic to access funds; the temporary reduction of withdrawal charges meant account holders would only have to pay back the 25% government bonus they received. Howeve...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes