Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will review the Lifetime ISA withdrawal limit to support first time buyers in London.

The Lifetime ISA (LISA) property price cap supports most first-time buyers across the UK while targeting households that might find it most difficult to get on the property ladder. Data from the latest UK House Price Index shows that while the average price paid by first-time buyers has increased, it is still below the LISA property price cap in all regions of the UK except for London, where the average price paid is affected by boroughs with very high property values.

Any unauthorised withdrawals are subject to a 25% withdrawal charge. This recoups the Government bonus, any interest or growth arising from it, and a proportion of the individual’s initial savings.

The Government keeps all aspects of savings tax policy under review.