Lifetime ISA Withdrawal Calculator
Calculate the charge on a non-qualifying Lifetime ISA withdrawal. Select an exempt case only when you have established all relevant conditions.
Rule year: 2026/27 · GBP · Sources checked
Cash received after Lifetime ISA withdrawal charge
Lifetime ISA gross withdrawal amount and legal treatment already established. First-home price, account age, conveyancer process and buyer eligibility are not inferred. Age and terminal-illness conditions must be checked separately. No investment projection, provider timing, partial-refund process or allowance replacement calculation.
For informational purposes only. This estimate is not financial advice, a tax return, a payroll calculation or a lender decision. See the supported circumstances and exclusions below.
How this calculator works
A non-qualifying Lifetime ISA withdrawal generally incurs a 25% charge on the amount withdrawn, including government bonus and any growth. This differs from simply giving back the original 25% bonus. With no growth, £1,000 deposited plus a £250 bonus becomes £1,250, and a 25% withdrawal charge leaves £937.50. Qualifying first-home, age-60-or-over and terminal-illness cases can be exempt, subject to their conditions. The selector records an established treatment; it does not decide that a purchase qualifies.
Formula and rules
Non-qualifying charge = gross withdrawal × 25%. Cash received = gross withdrawal − charge. No-growth original-deposit factor = 1.25 × 0.75 = 0.9375.
Assumptions and limitations
Lifetime ISA gross withdrawal amount and legal treatment already established. First-home price, account age, conveyancer process and buyer eligibility are not inferred. Age and terminal-illness conditions must be checked separately. No investment projection, provider timing, partial-refund process or allowance replacement calculation.
Worked example
A £5,000 non-qualifying gross withdrawal incurs a £1,250 charge and leaves £3,750 cash. If that £5,000 came solely from a £4,000 deposit and £1,000 bonus, it leaves £250 less than the original deposit.
- Cash received after Lifetime ISA withdrawal charge
- £3,750.00
- Withdrawal charge
- £1,250.00
- Charge rate
- 25%
- No-growth illustration from each £1,000 original deposit
- £937.50 after bonus and withdrawal charge
Official sources and review
Reviewed against the sources below on 2026-10-06. Rates are held in versioned rule modules. Versioned rules, official source review and year-specific calculation tests.
- GOV.UK: Lifetime ISA ↗
25% bonus, £4,000 annual deposit limit, age and account-opening eligibility.
- GOV.UK: Lifetime ISA withdrawals ↗
25% non-qualifying withdrawal charge; first-home, age-60 and terminal-illness exemptions have conditions.
Common questions
Does the charge only reclaim the bonus?
No. It applies to the gross withdrawal. Without growth, reclaiming 25% of the bonus-included amount leaves 6.25% less than the original deposit.
Does selecting first-home treatment confirm eligibility?
No. GOV.UK conditions include buyer eligibility, property value, account timing and the correct withdrawal process.
Can gains change the cash result?
Yes. The charge applies to the gross amount withdrawn, including gains. Enter the actual gross withdrawal amount.