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HMRC is set to penalise Lifetime ISA savers - with the punishment for withdrawals soaring to over £100m. Savers face hefty charges outside first-home or retirement withdrawals under current Labour Party and HMRC rules.

Savers using Lifetime ISAs faced withdrawal penalties totalling approximately £102million during the 2024/25 tax year, figures from HMRC have revealed.

This represents a significant rise from £75.3million in penalties during the previous year. Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, stated: "The 25 per cent government bonus for Lisa contributions can really boost people's savings and help that dream of owning your first home or having a decent retirement feel that bit more real."

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