You save £800 which is topped up by the 25% government bonus
The total in your LISA is now £1000
If you withdraw all of it, the government will charge you 25% of the whole withdrawal, leaving you £750. Which is less than you originally deposited.
As part of the government’s Coronavirus response, the 25% government withdrawal charge
has been temporarily reduced to 20% between 6 March 2020 - 5 April 2021.