{"id":189314,"date":"2025-10-04T10:47:33","date_gmt":"2025-10-04T10:47:33","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/189314\/"},"modified":"2025-10-04T10:47:33","modified_gmt":"2025-10-04T10:47:33","slug":"hmrc-set-to-punish-anyone-under-age-60-who-breaks-cash-withdrawal-rule","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/189314\/","title":{"rendered":"HMRC set to punish anyone under age 60 who breaks cash withdrawal rule"},"content":{"rendered":"

Savers face hefty charges outside first-home or retirement withdrawals under current Labour Party and HMRC rules.\"HMRCHMRC set to punish anyone under age 60 who breaks cash withdrawal rule<\/p>\n

HMRC is set to penalise Lifetime ISA savers – with the punishment for withdrawals soaring to over \u00a3100m. Savers face hefty charges outside first-home or retirement withdrawals under current Labour Party and HMRC rules.<\/a><\/p>\n

Savers using Lifetime ISAs faced withdrawal penalties totalling approximately \u00a3102million during the 2024\/25<\/a> tax year, figures from HMRC have revealed.<\/p>\n

This represents a significant rise from \u00a375.3million in penalties during the previous year. Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, stated: “The 25 per cent government bonus for Lisa contributions can really boost people’s savings and help that dream of owning your first home or having a decent retirement feel that bit more real.”<\/p>\n

READ MORE Major update over calls for new 11pm to 9.30am bus travel rule in England<\/a><\/p>\n

Under the normal LISA rules, you can take some or all of your cash out of a LISA before age 60 even if you’re not buying a property \u2013 but you’re charged 25% of the amount withdrawn.<\/p>\n

She added: “However, the way the early exit penalty works is that it not only takes away the benefit of the government bonus but also a chunk of your own savings.<\/p>\n

“For someone who has saved hard to try and meet a financial goal it’s a tough lesson to take when they need to tap into that income for unforeseen circumstances and then get hit hard with a penalty.”<\/p>\n

Claire Exley, head of financial advice and guidance at JP Morgan-owned wealth manager Nutmeg, commented: “Property purchases using the Lifetime Isa increased significantly during the 2024\/25 tax year, likely driven by first-time buyers keen to beat changes to stamp duty rules at the start of April.”<\/p>\n

Exley noted: “Whether it is rising house prices which have put properties beyond the Lisa house price cap or a change in life circumstances that means people need the money in their Lisa, more savers are handing over their savings to pay the exit penalty.”<\/p>\n

Jason Hollands, managing director of Bestinvest, warned: “Isas should not be taken for granted given the increasingly painful tax burden in the UK.”<\/p>\n

I’s best to try to only use the LISA if you’re sure the cash is for one of the two defined purposes: buying a first-home costing \u00a3450,000 or less, or retirement.<\/p>\n","protected":false},"excerpt":{"rendered":"Savers face hefty charges outside first-home or retirement withdrawals under current Labour Party and HMRC rules.HMRC set to…\n","protected":false},"author":2,"featured_media":189315,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[45,49,48,133,28922,131,132],"class_list":{"0":"post-189314","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-ca","10":"tag-canada","11":"tag-finance","12":"tag-hmrc","13":"tag-personal-finance","14":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/189314","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=189314"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/189314\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/189315"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=189314"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=189314"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=189314"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}