Lifetime ISA: actions for LISA managers

Following the proposal to reduce the lifetime ISA (LISA) withdrawal charge from 25% to 20%, HMRC’s updated guidance confirms that LISA managers can apply the 20% withdrawal charge immediately, if their systems allow it. HMRC will aim to update its digital LISA service in June 2020 but, in the meantime, managers can either deduct the 20% charge when investors make an unauthorised withdrawal and report the charge when the digital service becomes available, or deduct and report a 25% charge and make a “superseded withdrawal charge” report later on using the digital service.