Source · Select Committees · Treasury Committee
Recommendation 1
1
Acknowledged
Lifetime ISA may not be an efficient use of taxpayer money for its dual objectives.
Conclusion
We endorse the Government’s policy objectives of supporting first-time buyers and encouraging long-term retirement savings. However, the Lifetime ISA may not be the most efficient use of taxpayers’ money to achieve those disparate objectives, which might require separate, tailored policies. (Conclusion, Paragraph 24)
Government Response Summary
The government committed to working with the industry to consider ways to improve messaging around Lifetime ISAs, while reaffirming its commitment to making ISAs simple and flexible.
Government Response
Acknowledged
HM Government
Acknowledged
The Government is committed to making ISAs, including Lifetime ISAs, as simple and flexible as possible. Individuals can open and pay into one Lifetime ISA per tax year and are free to have multiple accounts with different providers. There is no requirement for Lifetime ISA users to close an account after a house purchase, however, some individuals may prefer to open a different account in order to explore different rates and investment options. The Government regulates the approval of ISA managers and the rules within which the ISA and managers must operate. There is no direct contact or interaction with individuals. However, we will work with industry to consider ways in which it could improve its messaging.