Petition · HM Treasury

Guarantee a penalty-free transfer for LISA holders before its replacement

Open for signatures 87 signatures

What the petition asks

Government to formally confirm and legislate for a penalty-free transfer window for all current Lifetime ISA holders, allowing them to move their savings into the new ISA (as announced in 2025 budget)— or an alternative savings product — without incurring any withdrawal penalty by April 2028.
The Government has announced that the LISA is being replaced by a new type of ISA in 2028. We believe thousands of holders are feeling trapped by the £450,000 property cap, unchanged since 2017. The average London house price exceeds £551,000. Withdrawing triggers a 25% penalty — removing not just the government bonus but also 6.25% of savers' own money.

In our view these savers followed government guidance and did nothing wrong. We call for the Government to legislate for a penalty-free transfer window before 2028 so no saver loses their own money.

Timeline

29 Apr 2026 Petition opened for signatures

Key facts

Signatures 87
Status Open for signatures
Department HM Treasury
Opened 29 Apr 2026

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Source: the official petition page. Last checked 26 Jul 2026.