Lifetime ISA withdrawal charges hit record 154,100 savers
HMRC data shows 154,100 UK savers paid withdrawal charges after taking money from Lifetime ISAs for unauthorised reasons in 2025–26. The figures have prompted Martin Lewis to call for reform of the £450,000 home-price limit.
By DoomRadar · Published on DoomRadar . Updated .
What happened
HMRC data cited by multiple outlets shows that 154,100 savers made unauthorised Lifetime ISA withdrawals between April 2025 and March 2026 and faced charges. [1][2][3]
References for this detail (3)
- Martin Lewis issues HMRC warning over 'unfair' fines to 154,100 peopleaol.co.uk · Recorded source date: Sep 22, 2026, 3:01 AM UTC
- HMRC confirms 'unfair' penalties for 154,000 people because of their savingsbirminghammail.co.uk · Recorded source date: Sep 22, 2026, 6:17 AM UTC
- Martin Lewis issues HMRC warning over 'unfair' fines to 154,100 peopleexpress.co.uk · Recorded source date: Sep 22, 2026, 3:17 AM UTC
A Birmingham Mail report says the charges totalled close to £119 million, while 99,750 savers withdrew £1.5 billion to buy homes during the same year. [2]
References for this detail (1)
- HMRC confirms 'unfair' penalties for 154,000 people because of their savingsbirminghammail.co.uk · Recorded source date: Sep 22, 2026, 6:17 AM UTC
The Lifetime ISA property-purchase limit remains £450,000, according to the reports; withdrawals for an unauthorised reason incur a charge described as 6.25% of the savings. [1][2][3]
References for this detail (3)
- Martin Lewis issues HMRC warning over 'unfair' fines to 154,100 peopleaol.co.uk · Recorded source date: Sep 22, 2026, 3:01 AM UTC
- HMRC confirms 'unfair' penalties for 154,000 people because of their savingsbirminghammail.co.uk · Recorded source date: Sep 22, 2026, 6:17 AM UTC
- Martin Lewis issues HMRC warning over 'unfair' fines to 154,100 peopleexpress.co.uk · Recorded source date: Sep 22, 2026, 3:17 AM UTC
Context from the sources
The reports say the £450,000 limit has not changed since Lifetime ISAs launched in 2017, while the average London house price has risen to £553,000 since then. [1][3]
Explore the sources and reporting timeline
3 source links · 3 domains
These counts describe the references, not independent confirmations. Different outlets can repeat the same original report.
1 of these links repeat a headline already present, allowing for punctuation and publisher branding. Repeated wording is not additional confirmation.
Source timeline
Oldest to newest among the available source dates, not a chronology of the incident. Article publication dates come from the source; other recorded dates may reflect when a link was found.
- [1] Martin Lewis issues HMRC warning over 'unfair' fines to 154,100 peopleaol.co.ukReferenced for: detail 1, detail 3
- [3] Martin Lewis issues HMRC warning over 'unfair' fines to 154,100 peopleexpress.co.ukReferenced for: detail 1, detail 3
- [2] HMRC confirms 'unfair' penalties for 154,000 people because of their savingsbirminghammail.co.ukReferenced for: detail 1, detail 2, detail 3
What this could mean for you
Some prospective buyers may face a larger funding gap when using Lifetime ISA savings for a property above the permitted price.
The unchanged £450,000 property limit can make a withdrawal unauthorised, triggering the reported charge on the account balance.
Reported basis: [1][2][3] · The possible effect is interpretation.
Depends on: The saver must withdraw for a property purchase that does not meet the scheme rules.
People needing to access savings for an emergency may receive less money than they withdraw.
Unauthorised Lifetime ISA withdrawals are subject to the reported charge, reducing the amount available to the saver.
Reported basis: [2] · The possible effect is interpretation.
Depends on: The withdrawal is not for an authorised purpose under the scheme.
Possible consequences, not a forecast. Their relevance depends on your location and the conditions above.
For your country
Choose a country to check how this event could affect you.
What changes the outlook
Risk increases if…
The home-price limit remaining unchanged while qualifying property prices rise would leave more purchases outside the scheme’s rules.
Further unauthorised withdrawals would increase the number of savers paying charges.
Pressure eases if…
Raising the property-price limit or changing the withdrawal rules would reduce charges for affected homebuyers, if adopted.
Clearer rules or exemptions for qualifying hardship withdrawals could reduce penalties, if introduced.
Still unclear
The sources do not establish whether HMRC or the government will change the withdrawal rules.
The excerpts do not break down how many charged withdrawals were caused by property-price limits, emergencies or other unauthorised reasons.
Market implications
Market impact
Sources (3)
References for the reported details. Separate links do not necessarily mean independent confirmation.
Available excerpt
Martin Lewis has issued a HMRC warning over 'unfair' fines that have been issued to 154,100 people. Latest data from HMRC shows that a record…A short excerpt from our source record; open the original for the full article.
Available excerpt
More first-time buyers were stung by Lifetime Isa (Lisa) penalties last year than bought a home with the scheme. HMRC has confirmed "unfair" fines for…A short excerpt from our source record; open the original for the full article.
Available excerpt
HMRC data shows that a record number of 154,100 savers faced fines last year as Martin Lewis issues warning to Brits Martin Lewis has issued…A short excerpt from our source record; open the original for the full article.
AI-assisted analysis · . Based on linked headlines and available excerpts. Methodology · Report an error.