Following today’s announcement by the Economic Secretary to the Treasury to amend Lifetime ISA (LISA) rules to help those affected by Coronavirus, Brian Morris, BSA Head of Savings Policy comments:
“LISAs are designed as long term savings, either for retirement or in the case of a cash LISA most often to build up a deposit to buy a first home.
"LISA holders are encouraged not to draw out money from their LISA unless it is absolutely essential. However, for those facing the impact of the Covid-19 crisis who have no choice, we welcome the announcement by the Economic Secretary to the Treasury that for this tax year anyone who has to withdraw cash can do so without the normal 5% additional charge. They will however still lose the 20% Government bonus.”