Individual Savings Accounts
The question
To ask the Chancellor of the Exchequer, whether she plans to adjust the upper limit on house purchases using a Lifetime ISA in line with inflation.
Answered by Tulip Siddiq
Data from the latest UK House Price Index demonstrates that the average price paid by first-time buyers remains below the LISA property price cap in all regions of the UK.
Any unauthorised withdrawals are subject to a 25% withdrawal charge. This recoups the Government bonus, any interest or growth arising from it, and a proportion of the individual’s initial savings. HMRC is currently undertaking social research on the LISA with existing account holders and those who are eligible but have not opened a LISA.
HMRC commits to publishing all research in their Annual Report and Accounts. The findings from all strands of research on the LISA will be published in due course.
The Government keeps all aspects of savings tax policy under review.
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