Tens of thousands of people with UK Lifetime ISAs are being penalised more than once when they withdraw their own savings early, according to new HMRC figures reported by multiple outlets. Around 45,000 savers are said to have incurred withdrawal charges in more than one instance during a year, with some cases involving very large total costs.
Reports citing the data and analysis from a money app (Plum) say the charges can add up quickly and amount to significant sums for first-time buyers. One outlet estimates savers lost about £760 on average during the year when considering the repeated penalties. Other coverage focuses on the scale of repeat charging and highlights that the withdrawals trigger the Lifetime ISA rules each time.
While the outlets emphasize different implications—such as the average loss versus the maximum figures—the underlying point across sources is that HMRC data shows repeat withdrawal penalties affecting a large group of Lifetime ISA holders who access funds outside the scheme’s conditions.
