If you have a Tembo Lifetime ISA, if you decide that you no longer want your account, you can cancel within 30 days of opening the account without incurring the 25% government penalty charge. Doing so means your account will be closed and any funds you withdraw won’t count towards your current year’s ISA allowance. Keep in mind that if you open a Stocks and Shares Lifetime ISA, you may get back less than you put in depending on how your investments have performed since you opened the account.

If you close your Lifetime ISA after 30 days, the 25% government penalty charge will be deducted from the funds you withdraw, meaning you may get back less than you paid in. You also won’t be able to pay into another Lifetime ISA in the same tax year.