If you’d like to withdraw from a Lifetime ISA you will need to log into your account on the web.
The Lifetime ISA is designed to help saving towards the purchase of a first house, or for your retirement. Because of this, there are some important aspects to consider before withdrawing. The rules around withdrawing during the initial tax year of the introduction of the Lifetime ISA are also different from later tax years.
Withdrawing in this tax year — from 6th April 2017 to 5th April 2018
- You can only make a complete withdrawal of your Lifetime ISA. You can’t withdraw just a part of it.
- If you make a complete withdrawal this tax year it won’t affect your usage of this year’s ISA or Lifetime ISA allowance.
Withdrawing after 5th April 2018
- The withdrawal will need to be made for the purchase of a first home in the UK up to the value of £450,000 or for retirement after turning 60 years old.
- If you need to withdraw the money before you’re 60, and it’s not for the purchase of a first home, or due to a terminal illness, you’ll pay a 25% government penalty. So you may get back less than you put in.
- You have to have held the Lifetime ISA for at least 12 months before you can use it towards the purchase of a property.
The Lifetime ISA is a relatively new product. If you have questions about it, please contact us.