HMRC is set to punish UK households accessing their OWN CASH under cruel and problematic Lifetime ISA rules, it has been warned. New HMRC research shows confusion over the Lifetime ISA, with savers split between using it for a first home or retirement.

Many people have faced the difficult battle over the need to save for the future versus the need to pay their bills in recent years, and higher costs have often won. This has forced them to stomach the 25 per cent charge to gain access to their money, experts have warned.

42 per cent of those not currently holding a LISA said a change to the rules so that original savings would not be lost with the withdrawal charge would be most likely to motivate them to open one, new data shows.

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