Transfer from Lifetime ISA 19 January at 3:43PM in ISAs & tax-free savings 1 reply 68 views

CharlotteA20

I understand that if you withdraw any more from a Lifetime ISA that's not for a house deposit you lose 25% back from the government. However, I can't find anything online if it will effect the rest of the money in the ISA. 
Say I wanted to withdraw 10% of my full ISA savings (to help pay off debt/overdraft/bills then meaning my financial situation will be back on track and I can start saving again) while I will lose some money from the withdrawal, will the rest left in my ISA be effected? Thanks 

eskbanker

Any withdrawal from a LISA (other than for a qualifying first property purchase or after 60) is subject to a penalty of 25% of the amount withdrawn, but the remaining account balance is unaffected by that.