Lifetime ISAs guide

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  • ryath
    ryath Posts: 50 Forumite
    First Post First Anniversary
    edited 11 January 2018 at 10:22PM
    Can I transfer my HL Stocks and Shares LISA into the Skipton Cash LISA and transfer my Halifax H2B ISA into Skipton? As a result of transferring my current Stocks and Shares LISA will I have to re-start the 12-month countdown for using LISA funds towards a property?
  • Savingfemme
    Savingfemme Posts: 1 Newbie
    Hi I have a few questions that I wondered if anyone could advise on?

    I opened an Skipton LISA June 2017 so I assume i have until 5 April 2018 to get my £4,000 paid in and I will receive my 25% bonus in June 2018?

    After the first year the 25% bonus is paid monthly? so would that be from 6 April contributions? or for me from June? Are they paying 25% monthly on any contributions within the month? or are they paying you 1/12th of 25% per month? (I hope that makes sense?)
  • eskbanker
    eskbanker Posts: 30,938 Forumite
    First Anniversary Name Dropper Photogenic First Post
    ryath wrote: »
    Can I transfer my HL Stocks and Shares LISA into the Skipton Cash LISA and transfer my Halifax H2B ISA into Skipton? As a result of transferring my current Stocks and Shares LISA will I have to re-start the 12-month countdown for using LISA funds towards a property?
    Yes and no respectively....
  • eskbanker
    eskbanker Posts: 30,938 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Savingfemme wrote: »
    I opened an Skipton LISA June 2017 so I assume i have until 5 April 2018 to get my £4,000 paid in and I will receive my 25% bonus in June 2018?
    The bonus payment for 2017/18 will be at the start of the tax year (late April or early May) regardless of when you opened the LISA.
    Savingfemme wrote: »
    After the first year the 25% bonus is paid monthly? so would that be from 6 April contributions? or for me from June?
    April onwards.
    Savingfemme wrote: »
    Are they paying 25% monthly on any contributions within the month? or are they paying you 1/12th of 25% per month?
    The former, 25% on any contributions, i.e. if you pay in the whole annual allowance of £4K in April (after 6th) you'd get a £1K bonus in May.
  • Lungboy
    Lungboy Posts: 1,953 Forumite
    First Anniversary First Post
    Am I correct in thinking that LISAs can't be accessed if someone is retired early due to ill health, only if they are terminal? As opposed to workplace pension and sipps?
  • Alexland
    Alexland Posts: 9,653 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Lungboy wrote: »
    Am I correct in thinking that LISAs can't be accessed if someone is retired early due to ill health, only if they are terminal? As opposed to workplace pension and sipps?

    It can be accessed before 60 without penalty if you are completing on a qualifying property purchase, die or are diagnosed as terminally ill with less than 12 months to live.

    Otherwise you loose the bonus and pay a small penalty on the withdrawn amount.

    Alex.
  • AlluringRage
    AlluringRage Posts: 15 Forumite
    Hi,
    I opened a LISA in June 2017 with £1 (should have done this much earlier) I’m gonna put in £3999 before April so I get my bonus.

    If I put in another £4000 between April 6th 2018 and June 2018 dose that mean I’d get a bonus for both amounts?

    I’d be looking to purchase my Dads house July/Aug 2018.

    Clarification on this would be much appreciated.
    Thank you in advance.
  • Alexland
    Alexland Posts: 9,653 Forumite
    First Anniversary Photogenic Name Dropper First Post
    edited 14 January 2018 at 5:25PM
    AlluringRage wrote: »
    Hi,
    I opened a LISA in June 2017 with £1 (should have done this much earlier) I’m gonna put in £3999 before April so I get my bonus.

    If I put in another £4000 between April 6th 2018 and June 2018 dose that mean I’d get a bonus for both amounts?

    I’d be looking to purchase my Dads house July/Aug 2018.

    Clarification on this would be much appreciated.
    Thank you in advance.

    Yes you will have £10k in the account by July/Aug as the second bonus should turn up a month or two after the second tax year contribution. Once you have the second bonus and with the account being open 12 months you can buy your dad's house assuming all other criteria are ok.
  • coldjim
    coldjim Posts: 45 Forumite
    First Anniversary Combo Breaker First Post
    edited 15 January 2018 at 10:53AM
    Alexland wrote: »
    Yes you will have £10k in the account by July/Aug as the second bonus should turn up a month or two after the second tax year contribution. Once you have the second bonus and with the account being open 12 months you can buy your dad's house assuming all other criteria are ok.



    Hey, I know this post isn't related to me, but I was just wondering if you could clarify something for me on the second tax year contribution.
    Why would this be paid a month or two after the tax year? why would you not have to wait till next tax year to get the second £1000?


    My situation is that I have been saving in my HTB ISA since December 2015 and have £6459.93 saved up so far (£4292.27 before April 2017). I have opened a Cash Lisa with Skipton in the middle of last year and have put £1 in to start the timer.
    My plan is to transfer this money into the cash lisa soon and then top it up to get my £2k bonus for this year (from the HTB and additional funds).
    Are you then saying I can contribute ANOTHER £4k after the 5th April and get another £1k in a couple months after? So I could potentially have £15k in my Lisa for a house? so £3k bonus in all?


    Also I was wondering could I do a partial contribution to the Lisa, keeping the money after the 5th April 2017 in the HTB getting 3.5% interest? Or is this not allowed? Do I have to do a full transfer? I know I can't get the bonus on both and don't plan too, but its a good savings account then at 3.5% and can continue paying in the £200 a month, as I believe there is no penalty for taking the money out when I need it unlike the Lisa?


    Cheers. Any answers would be appreciated. Want to get the most amount I can out of this!
  • eskbanker
    eskbanker Posts: 30,938 Forumite
    First Anniversary Name Dropper Photogenic First Post
    coldjim wrote: »
    Hey, I know this post isn't related to me, but I was just wondering if you could clarify something for me on the second tax year contribution.
    Why would this be paid a month or two after the tax year? why would you not have to wait till next tax year to get the second £1000?


    My situation is that I have been saving in my HTB ISA since December 2015 and have £6459.93 saved up so far (£4292.27 before April 2017). I have opened a Cash Lisa with Skipton in the middle of last year and have put £1 in to start the timer.
    My plan is to transfer this money into the cash lisa soon and then top it up to get my £2k bonus for this year (from the HTB and additional funds).
    Are you then saying I can contribute ANOTHER £4k after the 5th April and get another £1k in a couple months after? So I could potentially have £15k in my Lisa for a house? so £3k bonus in all?
    LISA bonus payments are to be made monthly from the 2018/19 tax year onwards, the annual payment this year is just a one-off. So, if you pay £4K into a LISA between 6 April and 5 May 2018, you'll receive the 25% by late May or maybe early June.
    coldjim wrote: »
    Also I was wondering could I do a partial contribution to the Lisa, keeping the money after the 5th April 2017 in the HTB getting 3.5% interest? Or is this not allowed? Do I have to do a full transfer? I know I can't get the bonus on both and don't plan too, but its a good savings account then at 3.5% and can continue paying in the £200 a month, as I believe there is no penalty for taking the money out when I need it unlike the Lisa?
    Subject to both providers allowing a partial transfer this is OK as far as HMRC are concerned. You could indeed continue to pay into a HTB but only up to the point you bought your first property, and personally I'd be looking at the 25% rather than the 3.5% unless you'll be in a position to fill your LISA with everything available every year and need somewhere for the overflow.
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