Can you transfer a Lifetime ISA to another provider without penalty?

Full answer

**LISA transfer rules** A Lifetime ISA can be transferred to another LISA provider without penalty. This is distinct from a withdrawal — withdrawing cash from a LISA (for any purpose other than buying a first home or retirement after 60, or terminal illness) triggers the 25% government penalty charge. **How transfers work** 1. Open a LISA with the new provider (or have one already) 2. Request a transfer — usually done by the new provider asking the old provider to transfer 3. The old provider must complete the transfer within **30 calendar days** 4. The entire LISA balance (cash or investments) must transfer — partial transfers are not permitted 5. No penalty is applied 6. Your 25% government bonus history transfers with the funds **Why transfer?** - Better interest rates (for cash LISAs) - Access to different investment options (for stocks and shares LISAs) - Poor customer service from the current provider - Lower fees **Cash vs. stocks and shares LISA** Transferring between the same type (cash to cash, or S&S to S&S) is straightforward. Transferring from a stocks and shares LISA to a cash LISA may require selling investments first — check with your new provider. Transfer from cash to S&S is also possible. **Example: Emma** Emma has a cash LISA with Provider A earning 3.5% interest. Provider B now offers 4.5%. She requests a transfer to Provider B. No penalty; her £12,000 (including government bonuses) transfers within 30 days. She earns the higher rate going forward. **The annual contribution limit still applies** You can only contribute £4,000/year into a LISA regardless of how many providers you use. Transferring between providers does not count as a new contribution.

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