PARLIAMENTARY WRITTEN QUESTION
Individual Savings Accounts (4 October 2024)

To ask the Chancellor of the Exchequer, if she will commission research into the potential impact of the (a) property price limit and (b) exit penalty on first-time buyers who wish to use Lifetime ISAs to buy a property.

Asked by:
Ben Coleman (Labour)

Data from the latest UK House Price Index demonstrates that the average price paid by first-time buyers remains below the LISA property price cap in all regions of the UK.

Any unauthorised withdrawals are subject to a 25% withdrawal charge. This recoups the Government bonus, any interest or growth arising from it, and a proportion of the individual’s initial savings. HMRC is currently undertaking social research on the LISA with existing account holders and those who are eligible but have not opened a LISA.

HMRC commits to publishing all research in their Annual Report and Accounts. The findings from all strands of research on the LISA will be published in due course.

The Government keeps all aspects of savings tax policy under review.

Answered by:
Tulip Siddiq (Labour)
14 October 2024