Can I withdraw a Lifetime ISA if I am terminally ill?
Where a link is marked *, it is a partner link — we receive commission at no extra cost to you. Links without a * earn us nothing. How we make money.
In short: Yes. If a registered medical practitioner confirms you have less than 12 months to live, you can withdraw the full LISA balance without the 25% charge. Contact your provider with medical evidence to start the process.
Last reviewed:
Reviewed by Kaiser Khan
Terminal illness withdrawal is one of three authorised routes alongside first-home purchase and age-60 retirement access.
Funds can pay for care, adaptations or family support. Tax-free status applies to the withdrawal itself.
If you recover beyond the 12-month prognosis, rules on re-contribution are limited — seek provider guidance.
See LISA withdrawal rules guide for comparison with pension serious ill-health benefits.
Primary source: gov.uk/lifetime-isa
Part of our Savings & ISAs
This quick answer sits inside our wider savings & isas hub — with sub-guides, calculators and step-by-step explainers on the same topic.
Read the full savings & ISAs guide →