Canned Response - Moneybox Flashcards
(1 cards)
5.0
LISA withdrawal Req
In order to withdraw from your Lifetime ISA, we’ll need to receive the information outlined below.
When you withdraw the funds from your Moneybox Lifetime ISA for reasons other than a first home purchase, retirement (over 60), or a terminal illness, there is a government withdrawal penalty. This was previously 25%, though as a response to COVID-19, this has been reduced by HMRC to 20% until 5th April 2021.
To action a withdrawal at the 20% penalty, we’ll need to have confirmed receipt of your completed withdrawal form by midday on the 25th of March for Stocks & Shares LISAs, or midday on the 31st of March for Cash LISAs. This is to ensure your withdrawal completes before the penalty returns to 25%. Any withdrawals actioned after this date (including subsequent withdrawals of pending deposits or government bonuses) will have the 25% penalty applied.
Please note that if you are in the process of updating your bank account details, this may delay your withdrawal, which may result in the payment being made on or after 6th April where the 25% penalty will apply, even if the withdrawal request was made before 25th/31st March
Please note any funds you have deposited in the current tax year will continue to use up your allowance, even once withdrawn. For example, if you deposited £4,000 in the 20/21 tax year and then withdrew, you would need to wait until 21/22 to re-deposit as your full allowance would be used up.
Amount of funds to withdraw – Write “ALL” to withdraw all funds, including any pending bonus, which will also be subject to the government penalty once applied to your account. If a partial withdrawal, the penalty will be applied to the amount entered.
To complete this withdrawal please state to us:
- Your full name and National Insurance number for verification
- The amount you’d like to withdraw (as described above)
- Confirmation that you accept that by withdrawing funds from my Lifetime ISA you will pay a 20% government charge on the withdrawal amount. You can do this by stating ‘I Confirm’ alongside the details above.
If you have any questions, please let me know!
