Lifetime ISA exit charges more than triple during lockdown

FOI request

Sophie King
clock • 2 min read

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

Join

 

Already a Professional Adviser member?

Login

More on Investment

Partner Insight: Delivering a smoother era of retirement for clients

Partner Insight: Delivering a smoother era of retirement for clients

Sharing first-hand insights, Hannay Wealth chartered financial planner Vanessa Barnes explains how advisers can make the most of smoothed funds

Sarka Halas
clock 04 March 2025 • 2 min read
Partner Insight: Navigating the Retirement Risk Zone

Partner Insight: Navigating the Retirement Risk Zone

Smoothed returns can play a crucial role in the approach to retirement, says Samantha Pardoe, senior investment development manager at Standard Life.

Sarka Halas
clock 03 March 2025 • 3 min read
PA Working Lunches: Long-term structural change with Scottish Mortgage

PA Working Lunches: Long-term structural change with Scottish Mortgage

Join us for an informative session worth one hour of CPD

Professional Adviser
clock 25 February 2025 • 1 min read