Lifetime ISA withdrawal charge calculator
Reviewed by the HomeBuyingCosts team · Last reviewed 29 October 2026 · Independent, not GOV.UK
Calculator checked against GOV.UK rules and worked examples on (how we check).
Using a Lifetime ISA for a first home costing £450,000 or less is free of charge. From 29 October 2026, a first-time buyer purchase above £450,000 has a 20% charge on the whole amount withdrawn, which takes back the government bonus and none of your own money. Other withdrawals before 60 still have a 25% charge. On £16,000 paid in plus a £4,000 bonus, 20% costs £4,000 and 25% costs £5,000.
20% charge: first home above £450,000 (withdrawals from 29 October 2026)
| Your payments in | £16,000.00 |
| Government bonus | £4,000.00 |
| Account value withdrawn | £20,000.00 |
| Compared with what you paid in and earned | +£0.00 |
Under the old 25% charge this withdrawal would have cost £5,000.00, leaving £15,000.00. At 20%, the charge takes back the bonus but none of your own money.
The three outcomes
The charge is a percentage of everything you take out, including the bonus, not just the bonus. Because the bonus is 25% of what you pay in, a 20% charge on the total takes back exactly the bonus; a 25% charge also takes £1 in every £16 of your own money.
| Withdrawal | Charge | £16,000 paid in + £4,000 bonus |
|---|---|---|
| First home £450,000 or less | None | You get £20,000 |
| First home above £450,000 (from 29 October 2026) | 20% of the amount withdrawn | Charge £4,000, you get £16,000 |
| Any other reason before 60 | 25% of the amount withdrawn | Charge £5,000, you get £15,000 |
Conditions for a charge-free first home
- The property costs £450,000 or less and you are a first-time buyer.
- Your first payment into the Lifetime ISA was at least 12 months earlier.
- You buy with a mortgage, and your conveyancer asks for the money.
- Withdrawals at 60 or over, or if you are terminally ill, are also free of charge.
If your home costs more than £450,000
You can still use the money, but the 20% charge applies from 29 October 2026. First-time buyer stamp duty relief in England still applies up to £500,000, so a home between £450,001 and £500,000 can get stamp duty relief but not a charge-free Lifetime ISA withdrawal.
The Budget also announced a First Time Buyer ISA from April 2029 for new savers. It is not available yet; existing Lifetime ISA holders can carry on under the current rules.
Questions
Is the Lifetime ISA charge 20% or 25%?
20% for a first-time buyer purchase above £450,000 from 29 October 2026; 25% for other withdrawals before 60. A first home at £450,000 or less has no charge.
Do I lose my own money with the 20% charge?
Not if your account is only payments and bonus: 20% of the total equals the bonus. Interest or growth on top is partly taken too.
Is the charge only on the bonus?
No. It is a percentage of the whole amount withdrawn.
Working out how much cash you need?
The Home Buying Costs Pack (Edition 1.2, updated for Budget 2026) sets out every cost and when it is paid. £4.99, one-off.
See the packSources
- GOV.UK: Lifetime ISA withdrawal charges and charge-free withdrawals (updated 28 October 2026) (checked 29 October 2026)
- GOV.UK: Lifetime ISA (checked 29 October 2026)