Lifetime ISAs guide
Comments
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So if you aren't planning on buying a property for a few years there is no reason to open a LISA on the 6th April? Originally I was under the impression the bonus was paid a year after your first deposit but upon reading it seems it's paid in April 2018 regardless of when you open the account. Could someone confirm?
The bonuses are paid to providers by HMRC on fixed dates, starting April 2018 and then monthly after that. When providers choose to apply it to your account depends on the terms of the account. But as a general rule you should expect it around the time the provider receives it from HMRC which is April 2018 if you deposit any time during 2017/18. Some pension providers apply tax relief as soon as you deposit into an account. Others wait to receive it from HMRC first.0 -
In practice? It's never been done before! We won't know for another year at least.
While this is true, if it is the fact that all the funds in the LISA can only be used after the contracts have been exchanged, and that none of it can be used as the actual deposit, then MSE is clearly providing very bad 'advice' to transfer your H2B ISA to a LISA if you intend to wait longer than a year to purchase your property since as it currently reads, you won't be able to use the 'non-bonus' proportion towards the actual deposit, like you can with H2B.0 -
Am I correct in thinking that for the 1St year it doesn't matter when deposits are made as the bonus is only paid at the end of the year, but in subsequent years you want the full yearly amount deposited straight away to get the bonus early?
I think that's right. If interest rates on LISA's are not as good as can be had elsewhere, I will keep the money elsewhere before putting the full 4k in at the end of the 17/18 tax year.16 Panel (250W JASolar) 4kWp, facing 170 degrees, 40 degree slope, Solis Inverter. Installed 29/9/2015 - £4700 (Norfolk Solar Together Scheme); 9.6kWh US2000C Pylontech batteries + Solis Inverter installed 12/4/2022 Year target (PVGIS-CMSAF) = 3880kWh - Installer estimate 3452 kWh:Average over 6 years = 4400 :j0 -
Solution: Exchange and complete on the same day.dale_cotterill wrote: »While this is true, if it is the fact that all the funds in the LISA can only be used after the contracts have been exchanged, and that none of it can be used as the actual deposit, then MSE is clearly providing very bad 'advice' to transfer your H2B ISA to a LISA if you intend to wait longer than a year to purchase your property since as it currently reads, you won't be able to use the 'non-bonus' proportion towards the actual deposit, like you can with H2B.
Edit: I should point out that the mortgage deposit clearly isn't needed at exchange.
Edit2: In any case, the text you quoted clearly states the answer:
"The money will be paid directly to the conveyancer/solicitor, not to you. When you want to buy a home, ask your ISA provider to pay the money across to the person doing conveyancing for the new home. All funds, including the bonus, will be available to use at exchange."
Therefore it isn't true that the money can only be used after exchange. We still don't know how that will work, and won't until at least April 2018.0 -
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What's the quidco offer?
Quidco had a 24 hour cashback deal with Nutmeg. The deal was that if I opened a S&S ISA with Nutmeg and deposited £500, then going forward deposit £100 for 3 months, I get £200 cashback.
Seems like a very good deal. Apparently they have done it before through either Quidco or Topcashback so I’m sure it will pop up again.
I’ll let this experience Nutmeg guide me and see whether or not I open up a LISA with them.
My observations about them:
App: Seems good, easy to login (TOUCH ID with iPhone) I can immediately see what my investment balance is. Good UI. Wish there was more information about what my money is invested in.
Website: Again nice UI and it was easy to open the account. It allows you to choose from 1-10 how risky you would like your investments to be (10 being the highest risk). When you sign up they also show you your expected return on a graph (but don’t show you how much you actually invest over time to get that return) . You can see how your money is invested.
The bottom line is the return I get. I’m not expecting a great return in a few month, but if it goes down by a fair amount I’ll go with somebody else for my LISA. I chose a 4 out of 10 for my risk so I don’t expect a big change from the money I put into the account.
I am interested to see what everybody will be offering. I expect it won’t be as good as the Help to Buy ISA’s. Guessing we will get announcements for the companies offering at launch today?0 -
Hello,
I have a question on what constitutes a "First Time Buyer" please when related to using either a H2B or Lifetime ISA.
We have bought a property outright for my son using a Trust created by my wife and I. We then created a "Life Interest" naming him which allows the Trust to buy the property at the current SDLT rates (not the +3% surcharge as would otherwise be levied). He doesn't legally own the property at this stage, so if he later decided to buy his own property with a mortgage, can he use the H2B or LISA towards it (i.e. is he then a first time buyer)?
If not, he can only use his H2B or LISA towards his retirement which then raises the debate of contributing to a pension instead. Whilst the LISA can potentially net you more money once you factor in tax rates on draw downs, the other interesting considerations are that a pension cannot be considered towards benefits calculations, in bankruptcy hearings, or in some cases divorce settlements.
Any thoughts welcomed please?0 -
Hi All, I'm new to the forum today. I'd like to know if anyone has any recommendations for a LISA provider. I see Santander and other large banks/societies aren't doing them yet. Is it safe to go for a smaller company or should I wait. I was 38 in January and I'm looking to use this in retirement.
Many thanks,
Christian0 -
The definition at https://www.helptobuy.gov.uk/documents/2015/12/eligibility-of-ftbs.pdf isn't any more specific than 'owning an interest' but of course there is always the broader issue of whether someone who already has a property should use a technicality to seek taxpayer assistance to buy another one anyway....Hello,
I have a question on what constitutes a "First Time Buyer" please when related to using either a H2B or Lifetime ISA.
We have bought a property outright for my son using a Trust created by my wife and I. We then created a "Life Interest" naming him which allows the Trust to buy the property at the current SDLT rates (not the +3% surcharge as would otherwise be levied). He doesn't legally own the property at this stage, so if he later decided to buy his own property with a mortgage, can he use the H2B or LISA towards it (i.e. is he then a first time buyer)?0 -
Only Skipton BS have declared that they'll have a cash LISA available and even then it's not until June, so if it's a bank or building society you're looking for then you'll have to wait anyway. However, if you're aiming to build retirement funds at 38, then stocks and shares are likely to be a more appropriate long-term vehicle anyway, so there are more options on that front - see http://www.moneysavingexpert.com/savings/lifetime-ISAs#bestbuys for further details....Hi All, I'm new to the forum today. I'd like to know if anyone has any recommendations for a LISA provider. I see Santander and other large banks/societies aren't doing them yet. Is it safe to go for a smaller company or should I wait. I was 38 in January and I'm looking to use this in retirement.0
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