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  • FIRST POST
    • MSE Helen Saxon
    • By MSE Helen Saxon 16th Mar 16, 5:06 PM
    • 75Posts
    • 43Thanks
    MSE Helen Saxon
    Lifetime ISAs guide
    • #1
    • 16th Mar 16, 5:06 PM
    Lifetime ISAs guide 16th Mar 16 at 5:06 PM
    Hi!

    This is the discussion thread for the



    Click reply below to discuss. If you havenít already, join the forum to reply. If you arenít sure how it all works, read our New to Forum? Intro Guide.


    Thanks folks,
Page 54
    • Alextom
    • By Alextom 30th Nov 17, 7:55 AM
    • 1 Posts
    • 0 Thanks
    Alextom
    25% Bonus payout
    Hi,
    If I wanted to buy a house in the 13th month of opening my LISA, could I deposit the full yearly allowance of £4K in the first month of the second year and claim the £2k bonus straight away? That's considering I did deposit the full £4K in the first year too of course.
    Thanks!
    • eskbanker
    • By eskbanker 30th Nov 17, 12:59 PM
    • 5,892 Posts
    • 5,854 Thanks
    eskbanker
    Hi,
    If I wanted to buy a house in the 13th month of opening my LISA, could I deposit the full yearly allowance of £4K in the first month of the second year and claim the £2k bonus straight away? That's considering I did deposit the full £4K in the first year too of course.
    Thanks!
    Originally posted by Alextom
    There may be some confusion here about the significance of years!

    As you seem to have picked up correctly, you need to have held a LISA for a full year from opening before the money can be withdrawn without penalty.

    However, the annual allowance is £4K per tax year, not per year from opening.

    This actually works to your advantage, as it effectively means you can get £8K into a LISA in much less than a year - you could pay £4K in any time between now and 5 April 2018 and then another £4K on 6 April 2018....
    • Alexland
    • By Alexland 1st Dec 17, 7:39 PM
    • 750 Posts
    • 471 Thanks
    Alexland
    Also you don't claim the bonus. Your provider will automatically claim the bonus(s) on your behalf based on each contribution date and add it into the account.
    • jadada1234
    • By jadada1234 3rd Dec 17, 2:27 PM
    • 1 Posts
    • 0 Thanks
    jadada1234
    Interest on H2B transfer into LISA
    Hello,

    I am due to get interest on my Help 2 Buy ISA with Halifax this month. Does this interest count towards the £4,000 max on transfer into a LISA with Skipton or can the interest count in addition to the £4,000?

    Many thanks
    • eskbanker
    • By eskbanker 3rd Dec 17, 4:38 PM
    • 5,892 Posts
    • 5,854 Thanks
    eskbanker
    I am due to get interest on my Help 2 Buy ISA with Halifax this month. Does this interest count towards the £4,000 max on transfer into a LISA with Skipton or can the interest count in addition to the £4,000?
    Originally posted by jadada1234
    A bit of both - the interest for the period from December 2016 to 5 April 2017 doesn't count towards the £4K LISA allowance for 2017/18 but the rest does. Halifax should do the calculation when transferring to Skipton....
    • hbell86
    • By hbell86 3rd Dec 17, 8:09 PM
    • 4 Posts
    • 0 Thanks
    hbell86
    Transferring Stock and Shares LISA to cash LISA
    Hello,

    Bit of background needed. I've had a stocks and shares LISA since they launched. I now want to transfer this into a cash LISA. I then also want to transfer my help to buy ISA to the same cash LISA. So that all of my savings for my first home are together.

    Is this possible?

    Thanks
    • eskbanker
    • By eskbanker 3rd Dec 17, 11:43 PM
    • 5,892 Posts
    • 5,854 Thanks
    eskbanker
    Bit of background needed. I've had a stocks and shares LISA since they launched. I now want to transfer this into a cash LISA. I then also want to transfer my help to buy ISA to the same cash LISA. So that all of my savings for my first home are together.

    Is this possible?
    Originally posted by hbell86
    Yes, as long as your total 2017/18 contributions across all these accounts are less than £4K.
    • timeforchange6
    • By timeforchange6 5th Dec 17, 11:45 AM
    • 1 Posts
    • 0 Thanks
    timeforchange6
    I'm a bit confused and am hoping someone here can clarify...

    If i put 4k into a lifetime isa before the end of the tax year will i get the full 1k or is it based on when it was paid in?

    Also I see it's changing to monthly, how is this calculated? What happens if i put 4k at the start of the year compared to putting 4k in just before the end of the tax year?

    Thanks for the help in advance.
    • eskbanker
    • By eskbanker 5th Dec 17, 12:51 PM
    • 5,892 Posts
    • 5,854 Thanks
    eskbanker
    I'm a bit confused and am hoping someone here can clarify...

    If i put 4k into a lifetime isa before the end of the tax year will i get the full 1k or is it based on when it was paid in?

    Also I see it's changing to monthly, how is this calculated? What happens if i put 4k at the start of the year compared to putting 4k in just before the end of the tax year?

    Thanks for the help in advance.
    Originally posted by timeforchange6
    Contributions made this tax year will earn a 25% bonus payable at the start of the next tax year, regardless of how long they've been in the account (as it's not interest), so if you pay £4K in anytime before 5 April 2018 you'll get the £1K bonus in late April or maybe early May 2018.

    From the 2018/19 tax year the bonus will be payable monthly, based on contributions made during the previous month*, so if you paid £4K in in April 2018 you'd get £1K in May 2018, or if you pay £4K in in March 2019 you'll get the £1K bonus in April 2019.

    * The monthly periods are actually 6th of one month to the 5th of the following month, i.e. aligned with the tax year dates....
    • tommysaver
    • By tommysaver 6th Dec 17, 12:29 AM
    • 134 Posts
    • 58 Thanks
    tommysaver
    Contributions made this tax year will earn a 25% bonus payable at the start of the next tax year, regardless of how long they've been in the account (as it's not interest), so if you pay £4K in anytime before 5 April 2018 you'll get the £1K bonus in late April or maybe early May 2018.

    From the 2018/19 tax year the bonus will be payable monthly, based on contributions made during the previous month*, so if you paid £4K in in April 2018 you'd get £1K in May 2018, or if you pay £4K in in March 2019 you'll get the £1K bonus in April 2019.

    * The monthly periods are actually 6th of one month to the 5th of the following month, i.e. aligned with the tax year dates....
    Originally posted by eskbanker

    That's really helpful - thanks! Given the dates you have given above...

    Would the best thing to do be.... to open the Skipton LISA say Feb/March 2018 to be safe, dump my £4k in, then come the tax year April 2018 = free £1k bonus.

    [total now 5k]

    Then... in march time 2019.. put in another 4k march time, boom?

    [total now 10k]

    That way I can keep the money in other accounts before putting it into the LISA. Winner?

    Also one other question: What happens to the 0.75% interest? Say I have £4000 in March, bonus up to £5k in April. Next April, (2019) £5k would have been in there for 1 year = a massive £37.50 at 0.75%. ?

    Many thanks!
    • rachlikeswinter
    • By rachlikeswinter 6th Dec 17, 8:55 AM
    • 43 Posts
    • 133 Thanks
    rachlikeswinter
    That's really helpful - thanks! Given the dates you have given above...

    Would the best thing to do be.... to open the Skipton LISA say Feb/March 2018 to be safe, dump my £4k in, then come the tax year April 2018 = free £1k bonus.

    [total now 5k]

    Then... in march time 2019.. put in another 4k march time, boom?

    [total now 10k]

    That way I can keep the money in other accounts before putting it into the LISA. Winner?

    Also one other question: What happens to the 0.75% interest? Say I have £4000 in March, bonus up to £5k in April. Next April, (2019) £5k would have been in there for 1 year = a massive £37.50 at 0.75%. ?

    Many thanks!
    Originally posted by tommysaver
    Yes, exactly that. Most of us are taking advantage of regular savers etc with higher interest rates and then plan to drop in as last minute as poss. However - Skipton have announced they are not accepting any HTB transfers after 1 March, in order to make sure they can process all of them before end of tax year. So I wouldnít wait until then in case there are any issues. Iíve actually started transferring mine now - hoping it will be complete by next week. Yes Iím missing out on a couple of months interest on my HTB (which was 3.5%) but its nominal, for peace of mind.

    Re you interest query, yes thatís basically it. No oneís opened the Skipton account for the amazing interest rate; in fact weíre all ditching a good one for it. But you canít beat 25% free money so. Perhaps other banks will start to offer this and interest rates will get competitive but at the moment, just forget about the 0.75% and itíll be a fun surprise Itís in addition to your 4K allowance.
    • tommysaver
    • By tommysaver 6th Dec 17, 10:49 AM
    • 134 Posts
    • 58 Thanks
    tommysaver
    Yes, exactly that. Most of us are taking advantage of regular savers etc with higher interest rates and then plan to drop in as last minute as poss. However - Skipton have announced they are not accepting any HTB transfers after 1 March, in order to make sure they can process all of them before end of tax year. So I wouldnít wait until then in case there are any issues. Iíve actually started transferring mine now - hoping it will be complete by next week. Yes Iím missing out on a couple of months interest on my HTB (which was 3.5%) but its nominal, for peace of mind.

    Re you interest query, yes thatís basically it. No oneís opened the Skipton account for the amazing interest rate; in fact weíre all ditching a good one for it. But you canít beat 25% free money so. Perhaps other banks will start to offer this and interest rates will get competitive but at the moment, just forget about the 0.75% and itíll be a fun surprise Itís in addition to your 4K allowance.
    Originally posted by rachlikeswinter
    Perfect thank you very much for the reply! Will set mine up in Jan/Feb time :-) Hopefully I'll win the millions on premium bonds before then... Ta!
    • Chickabee
    • By Chickabee 8th Dec 17, 5:08 PM
    • 199 Posts
    • 71 Thanks
    Chickabee
    Did anyone opt for one of the Nutmeg S&S LISA? I opened one as there weren't any cash LISA offered initially and I needed to get it opened before my 40th birthday. I'm hoping to lump in a larger amount before the end of the tax year. However ive never really dealt with stocks & shares before and wondered if people think switching to a cash LISA might be a better option?
    • rachlikeswinter
    • By rachlikeswinter 8th Dec 17, 5:45 PM
    • 43 Posts
    • 133 Thanks
    rachlikeswinter
    A bit of both - the interest for the period from December 2016 to 5 April 2017 doesn't count towards the £4K LISA allowance for 2017/18 but the rest does. Halifax should do the calculation when transferring to Skipton....
    Originally posted by eskbanker
    So hereís the weird thing. Halifax have now transferred my balance over to Skipton and closed it (cba with keeping it open I have too many b/a as it is) which includes interest from part way this tax year 17/18. When I called to clarify how much allowance I have left he said £2449 (Iíve paif £1550 into HTB this year +£1 opening money) sooo... looks like interest isnít being included after all?!

    Did anyone opt for one of the Nutmeg S&S LISA? I opened one as there weren't any cash LISA offered initially and I needed to get it opened before my 40th birthday. I'm hoping to lump in a larger amount before the end of the tax year. However ive never really dealt with stocks & shares before and wondered if people think switching to a cash LISA might be a better option?
    Originally posted by Chickabee
    Completely depends on your circumstances. Generally speaking stocks and shares should be held for a minimum of 5 years (pref longer) in order to weather the ups and downs of the stock market and youíre more likely to make more money long-term. Short term is a higher risk so if you want to use your LISA before then you should have a cash LISA. Safer but worse returns.

    Thatís why as a rule - if youíre buying a house go for cash Lisa and if youíre saving for retirement go for S&S. But itís completely your decision. Transferring from one to other is fairly simple so donít worry if you think youíve made a mistake.
    • Chickabee
    • By Chickabee 8th Dec 17, 6:18 PM
    • 199 Posts
    • 71 Thanks
    Chickabee
    Completely depends on your circumstances. Generally speaking stocks and shares should be held for a minimum of 5 years (pref longer) in order to weather the ups and downs of the stock market and youíre more likely to make more money long-term. Short term is a higher risk so if you want to use your LISA before then you should have a cash LISA. Safer but worse returns.

    Thatís why as a rule - if youíre buying a house go for cash Lisa and if youíre saving for retirement go for S&S. But itís completely your decision. Transferring from one to other is fairly simple so donít worry if you think youíve made a mistake.[/QUOTE]


    Thanks for the advice. I opened mine for the retirement option as I own my own home so it is for the longer term of 20years then. I think I will stick with the S&S LISA in meantime to see how it performs.
    • deutsch
    • By deutsch 10th Dec 17, 1:58 PM
    • 322 Posts
    • 46 Thanks
    deutsch
    So I opened a Halifax HTB in Dec 2015. Ever since I've been putting £200 in.

    On 5th April 2017, I had £4492.16 (inc interest).

    I've opened a LISA 20/10/17 and put the full £4000, so have used the allowance.

    Does this mean I can only transfer £4492.16 before April 2018 to make use of the extra government bonus?

    Does this mean I can keep the Halifax HTB ISA? I want to keep it open and use it as a regular saver as 3.5% isn't bad.

    How close to 5th April 2018 can I / should I initiate the transfer?

    And then I can only use the LISA from 20/10/2018?
    Last edited by deutsch; 10-12-2017 at 2:03 PM.
    • eskbanker
    • By eskbanker 10th Dec 17, 7:34 PM
    • 5,892 Posts
    • 5,854 Thanks
    eskbanker
    So I opened a Halifax HTB in Dec 2015. Ever since I've been putting £200 in.

    On 5th April 2017, I had £4492.16 (inc interest).

    I've opened a LISA 20/10/17 and put the full £4000, so have used the allowance.

    Does this mean I can only transfer £4492.16 before April 2018 to make use of the extra government bonus? You can also add the interest earned but not paid up to that point, i.e. from December 2016 (presumably) up to 5 April 2017, even though this would have been added to the balance in 2017/18

    Does this mean I can keep the Halifax HTB ISA? I want to keep it open and use it as a regular saver as 3.5% isn't bad. Yes

    How close to 5th April 2018 can I / should I initiate the transfer? If it's a cash LISA with Skipton, they've advised that such transfers need to be initiated by March 1st, as per post #1059 above

    And then I can only use the LISA from 20/10/2018? Yes
    Originally posted by deutsch
    See answers above....
    • Dearnus
    • By Dearnus 11th Dec 17, 11:22 PM
    • 1 Posts
    • 0 Thanks
    Dearnus
    HTB transfer to LISA
    I have had a HTB for 18 months contributing £200 per month and I also opened a LISA S&S with the full £4000 in April 2017. I now want to move the HTB funds that have built up over this and the last tax year into the LISA and I am not sure how much and when is the best time to transfer, any ideas?
    • eskbanker
    • By eskbanker 11th Dec 17, 11:59 PM
    • 5,892 Posts
    • 5,854 Thanks
    eskbanker
    I have had a HTB for 18 months contributing £200 per month and I also opened a LISA S&S with the full £4000 in April 2017. I now want to move the HTB funds that have built up over this and the last tax year into the LISA and I am not sure how much and when is the best time to transfer, any ideas?
    Originally posted by Dearnus
    You can transfer the 2016/17 HTB money (plus interest earned by 5 April 2017) into the LISA this tax year but the 2017/18 contributions will have to wait until next tax year as you don't have any more headroom in the LISA for 2017/18 money. As above, Skipton are specifying that HTB transfers into their LISA need to be started by 1 March, check with your provider if they're making any similar stipulations.
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