Petition · past parliament · HM Treasury
Reduce the Lifetime ISA withdrawal penalty from 25% to 20%
Closed
35 signatures
What the petition asks
We want the Government to reduce the withdrawal penalty from a Lifetime ISA from 25% to 20% so savers needing to withdraw for reasons other than first time buying or retirement, are not punished for wanting to reallocate their savings.
I believe reducing the withdrawal penalty to 20% would encourage more people to use these saving devices as their savings would not be as constricted. Why should savers be punished by taking a hit on their initial input, for having or needing to withdraw funds for other mitigating reasons? We believe you should be able to get back at LEAST the initial investment if made in a cash LISA.
Timeline
| 28 Mar 2024 | Petition opened for signatures |
| 29 May 2024 | Closed to new signatures |
Key facts
Signatures
35
Status
Closed
Department
HM Treasury
Opened
28 Mar 2024
Closed
29 May 2024
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Source: the official petition page. Last checked 15 Jul 2026.