45,000 Lifetime Isa savers hit with multiple withdrawal charges

Summarised from 2 outlets · Updated 8 Oct, 14:24 · Archive

About 45,000 savers faced multiple withdrawal penalties from Lifetime ISAs in 2024/25.

About 45,000 savers faced multiple withdrawal penalties from Lifetime ISAs in the 2024/25 tax year, according to figures obtained by money app Plum. The charges represent significant sums of money for first-time buyers, Plum said.

The penalties have prompted calls for the government to ensure any replacement product for the Lifetime ISA is fit for purpose.

How it is being reported

• Thousands of Lifetime ISA savers slammed with multiple withdrawal penaltiesThousands of Brits who saved into a Lifetime ISA were hit with multiple withdrawal penalties in a single tax year, as calls for the government to ensure the replacement product is fit for purpose grows. Roughly 45,000 savers were penalised for unauthorised withdrawals from Lifetime ISAs (LISA) in the 2024/25 tax year, according to an [...]City AM · 8 Oct, 13:37
• 45,000 Lifetime Isa savers hit more than once in a year with withdrawal chargesMoney app Plum, which obtained the figures, said the charges are ‘significant sums of money for first-time buyers’.Evening Standard · 8 Oct, 00:01

In this story: Lifetime ISA · Plum

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