The Lifetime ISA (LISA) replacement is set to remove the retirement saving element and withdrawal fees, the Treasury has confirmed.
The Treasury confirmed to Citywire it the new product will take effect from April 2028 and will only be available for first-time property purchases. The current LISA can be used for first-time buyers and those retiring from the age of 60.
The government first announced it was creating a replacement to the LISA in the Autumn Budget documents last year. A consultation on the final proposals is expected next month.
A Treasury spokesperson said: ‘We recognise that the lifetime ISA is not working for everyone, particularly when people’s circumstances change. That is why we intend to consult on a new and improved product, specifically designed to support first-time buyers and without penalty for withdrawals.’
