Savings (Government Contributions) Act 2017 section Sch 1 para 17

Penalties for dishonest conduct relating to Lifetime ISA bonuses and withdrawal charges

Schedule 1 paragraph 17 sets out the penalties that apply when a person acts dishonestly to obtain Lifetime ISA government bonuses they are not entitled to, or to avoid the withdrawal charge that should apply to non-exempt withdrawals.

• A person who dishonestly acts or fails to act in order to obtain a government bonus they are not entitled to — or to help someone else do so — faces a penalty of up to the greater of £3,000 or the bonus amount wrongly obtained.
• A person who dishonestly acts or fails to act to ensure a non-exempt Lifetime ISA withdrawal is made without the required charge being deducted, or to conceal that a charge has become payable, faces a penalty of up to the greater of £3,000 or the amount that should have been deducted or was concealed.
• The Treasury may change the £3,000 minimum penalty figure by regulations.
• The assessment, appeal and enforcement rules from Schedule 36 to the Finance Act 2008 apply to penalties under this paragraph.

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