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1st year (2017/28) HTB/LISA max bonus available?
mcddrums
Posts: 8 Forumite
Hi everyone,
I want to run this past you to see if my thinking is correct...
I have a HTB ISA which has 4k in it and I have transferred this over to my LISA during the first year where it won't affect the max limit I'm allowed to put in.
I understand that when I transfered my HTB ISA the previous bonus earned would still be earned on the HTB amount transferred. So this would be £1000 banked.
With the Lisa I get the same 25% bonus. The maximum I can earn from a LISA in a year is £1000 on the £4000 I invest.
At the moment I'm unlikely to fill the separate LISA allowance of £4k as I've not been paying in enough to hit the £4k. However, I do have finds available which I could move over (as we can put in a lump sum). If I transferred enough to hit the £4k before the end of the tax year would I then earn £1k on that as well?
So effectively. Would this then mean that I could earn £2k - eg a 25% bonus carried in from the original HTB ISA, and then the LISA Bonus is treated separately, so another £1k for this year from that too?
Thanks very much
I want to run this past you to see if my thinking is correct...
I have a HTB ISA which has 4k in it and I have transferred this over to my LISA during the first year where it won't affect the max limit I'm allowed to put in.
I understand that when I transfered my HTB ISA the previous bonus earned would still be earned on the HTB amount transferred. So this would be £1000 banked.
With the Lisa I get the same 25% bonus. The maximum I can earn from a LISA in a year is £1000 on the £4000 I invest.
At the moment I'm unlikely to fill the separate LISA allowance of £4k as I've not been paying in enough to hit the £4k. However, I do have finds available which I could move over (as we can put in a lump sum). If I transferred enough to hit the £4k before the end of the tax year would I then earn £1k on that as well?
So effectively. Would this then mean that I could earn £2k - eg a 25% bonus carried in from the original HTB ISA, and then the LISA Bonus is treated separately, so another £1k for this year from that too?
Thanks very much
0
Comments
-
Yes, the 25% LISA bonus is applied to all qualifying contributions, whether from a HTB transfer or paid in as new money, so if you transferred £4K in from HTB contributions prior to 2017/18 and then another £4K of new money during this tax year then you'll receive a £2K bonus in late April or early May 2018.
You can of course then pay another £4K in anytime from 6 April 2018 and get another £1K bonus between one and two months later....0
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