Individual Savings Accounts
The question
To ask the Chancellor of the Exchequer, pursuant to the Answer of 28 January 2026 to Question 109300 on Individual Savings Accounts, whether existing Lifetime ISA holders will be permitted to transfer their savings without penalty into the new product that will be offered in place of the Lifetime ISA.
Answered by Lucy Rigby
At Autumn Budget 2025, the Government announced that it will consult in early 2026 on introducing a new, simpler ISA product for first time buyers. The new ISA product will be offered in place of the Lifetime ISA.
The consultation will consider how existing Lifetime ISA holders should be treated, including any potential transitional arrangements or transfer options.
It will remain possible to open a Lifetime ISA until the new product becomes available and for account holders to continue to save into their Lifetime ISA in line with the existing rules indefinitely.
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