Lifetime ISA withdrawal charge paused

Good news today for those whose income has been affected by Coronavirus, and who may need access to their LISA savings.

"Early access to the Lifetime ISA usually incurs a 25 per cent charge on the amount withdrawn, a rule intended to stop people from using the funds for a purpose other than buying a house or saving for later life.

But under the temporary rule announced today the charge on unauthorised withdrawals will be reduced to 20 per cent for the period between March 6, 2020, and April 5, 2021.

This means account holders will only pay back any government bonus they have received and not the additional withdrawal charge of 5 per cent. "