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Can I withdraw/close down my Lifetime ISA without incurring a penalty?
patbf
Posts: 1 Newbie
I opened a LISA in August 2020 but have found a property I want to buy now. I have been told I cannot use the LISA for my property purchase because I haven't had it for a year. Is this correct? I need the money now so can I withdraw all my money without incurring a penalty?
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Comments
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Your original contribution will have been boosted by a 25% bonus - premature closure (within the first year) means that you lose that bonus but you can get back what you paid in, plus a tiny bit of interest.0
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You are unable to use the LISA to support a property purchase unless it has been open 12 months but if you withdraw the money by 5th April 2021 then the withdrawal penalty has been reduced from 25% to 20% so the effect is you would get your original money back plus interest.£4000 + 25% bonus = £5000 but with a 20% withdrawal penalty would be £4,000After 5th April 2021 it would be £4000 + 25% bonus = £5000 but with a 25% withdrawal penalty would be £3,750
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