1st year (2017/28) HTB/LISA max bonus available?
Options
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
This discussion has been closed.
Categories
- All Categories
- 343.5K Banking & Borrowing
- 250.2K Reduce Debt & Boost Income
- 449.9K Spending & Discounts
- 235.6K Work, Benefits & Business
- 608.6K Mortgages, Homes & Bills
- 173.2K Life & Family
- 248.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards