Take money out of a Lifetime ISA before 60 for anything other than a first home and HMRC takes 25% of the withdrawal. That is not the same as giving back the bonus: it leaves you 6.25% down on your own money.
£1,000 paid in becomes £1,250 with the bonus. 25% of £1,250 is £312, so you receive £938 — £62 less than you put in. The charge applies to the whole balance, including your own contributions and any growth, which is why it bites harder than the bonus helps.
| Pot | Charge | You receive | Down on your own money |
|---|---|---|---|
| £1,000 | £250 | £750 | £50.00 |
| £2,000 | £500 | £1,500 | £100.00 |
| £3,000 | £750 | £2,250 | £150.00 |
| £5,000 | £1,250 | £3,750 | £250.00 |
| £7,500 | £1,875 | £5,625 | £375.00 |
| £10,000 | £2,500 | £7,500 | £500.00 |
| £12,500 | £3,125 | £9,375 | £625.00 |
| £15,000 | £3,750 | £11,250 | £750.00 |
| £20,000 | £5,000 | £15,000 | £1,000.00 |
| £25,000 | £6,250 | £18,750 | £1,250.00 |
| £30,000 | £7,500 | £22,500 | £1,500.00 |
| £40,000 | £10,000 | £30,000 | £2,000.00 |
| £50,000 | £12,500 | £37,500 | £2,500.00 |
No investment return is assumed anywhere on this page. Every figure is money you paid in plus the government bonus — the only part that is guaranteed. A stocks-and-shares LISA can do better or worse than this, and nobody can tell you which.
Rates and limits read 19 August 2026 from GOV.UK: Lifetime ISA, withdrawing money and ISA allowances. Figures are for the 2026/27 tax year.
Rates and limits for the 2026/27 tax year, read 19 August 2026 from GOV.UK. Nothing here is financial advice: it is arithmetic on published rules, and no investment return is assumed anywhere.