HMRC has issued penalties of up to £11,000 per person to people with savings in a move criticised by money expert Martin Lewis.

Currently, savers can put money away in a Lifetime ISA (LISA), to put towards the cost of buying a house.

For every £4,000 you put in each year, the government adds an extra £1,000, making a 25 percent top up.

But the catch is that you must spend the money on a property and it must cost £450,000 or less – which can be tricky in some parts of the UK where house…