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All topics For solicitors What can Lifetime ISA funds be used for?

What can Lifetime ISA funds be used for?

Lifetime ISA funds must be used directly towards the purchase price of the property. They can be used towards the exchange deposit, for the funds payable upon completion, or in-part for both.

Please note, HMRC put the onus on the conveyancer to ensure that the property purchase completes within 90 days of the withdrawal. If the purchase does not complete within 90 days then the conveyancer must either request an extension (of up to an additional 90 days) or return the funds to Moneybox in full.

Failure to do so could result in the customer being charged the 25% withdrawal penalty by HMRC, so please consider this when using LISA funds for non-refundable exchange deposits.

LISA funds cannot be used towards other expenses such as stamp duty, solicitors fees, mortgage payments, home furnishings etc. Any unused funds must be returned to the LISA, and should not be transferred directly to the customer under any circumstances.

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It's important you know

Capital at risk. All investing should be for the longer term. The value of your investments can go up and down, and you may get back less than you invest. Tax treatment depends on individual circumstances and may be subject to change in the future.

A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Payments you make into your pension won’t be accessible until the minimum pension age (currently 55, increasing to age 57 from 2028). Tax treatment depends on individual circumstances and may be subject to change in the future.

For Business Saver: T&Cs apply. Max one withdrawal per day.

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