Savings (Government Contributions) Act 2017

Charge when non-exempt withdrawal made U.K.

8 (1) Except as provided by or under paragraph 7, this paragraph applies in relation to a withdrawal from a Lifetime ISA. U.K.

(2) An amount, equal to the total of—

(a) the specified percentage of so much of the withdrawal as is a withdrawal of sterling, and

(b) the specified percentage of the market value of the rest (if any) of the withdrawal,

is to be paid (in sterling) to HMRC.

(3) Where there is a plan manager of the Lifetime ISA at the time of the withdrawal—

(a) that plan manager and the investor are jointly and severally liable to HMRC for the amount payable under sub-paragraph (2), and

(b) without prejudice to paragraph (a), that plan manager must deduct that amount from the withdrawal and pay the amount deducted to HMRC.

(4) Otherwise, the investor is liable to HMRC for the amount payable under sub-paragraph (2).

(5) In sub-paragraph (2) “specified” means specified by Treasury regulations.

(6) In relation to a withdrawal specified under paragraph 7(4), sub-paragraph (3) has effect as if it provided as follows—

“(3) Where, at the time an amount becomes payable under sub-paragraph (2) in the case of the withdrawal, there is a plan manager of the Lifetime ISA ( “ the original ”) or any Lifetime ISA that in accordance with Treasury regulations is a successor to the original—

(a) each such plan manager, and the investor, are jointly and severally liable to HMRC for the amount payable under sub-paragraph (2),

(b) the liability under paragraph (a) of a plan manager of a Lifetime ISA is limited to the amount or value of the investments from time to time held under that Lifetime ISA, and

(c) a plan manager of a Lifetime ISA may meet a liability under paragraph (a) by deducting an amount from that Lifetime ISA and paying the amount deducted to HMRC.”

(7) Treasury regulations may make provision for the amount payable under sub-paragraph (2) in the case of a withdrawal to be calculated not as mentioned in that sub-paragraph but in accordance with the regulations.

(8) A percentage specified under sub-paragraph (2), or provision made under sub-paragraph (7), may be such that the amount payable to HMRC under sub-paragraph (2) in the case of a withdrawal is greater than so much of the withdrawal as is attributable, directly or indirectly, to bonuses.