Is the LISA bonus pro-rata?

Bark01 · 7 October 2017 at 3:57PM

Hi,

quick question I've got 8k in a LISA that i opened in April (merged a H2B ISA, hence the higher amount). I only just finished putting in this years allowance this month.

If I buy a house on the 1st April 2018 do I get the full bonus of 2k or is what I put in this year subject to a pro-rata?

Following on from that if I put in next years 4k allowance on the 1st of April '18 (taking me up to 12k) and then by a house on the 2nd of April would i get 3k as a bonus?

thanks

greenglide · 7 October 2017 at 4:16PM

The purchase would have to be on 6th April or later. Also you would need to have opened the LISA on 6th April 2017 to achieve this - the LISA must have been open for at least a year.

If you have paid £4,000 new money into the LISA this tax year and you have transferred (say) £4,100 in from a HTB ISA then you will get £2,025 bonus in April ( (4000 + 4200) / 4).

If you did buy a property on 6th April 2018 it may be "interesting" actually getting the bonus from the government!

Bark01 · 7 October 2017 at 4:41PM

My dates were a bit fanciful...

Think I opened my LISA within the first few weeks and very unlikely I'd be buying on the day after it matured but my thought process seems fine!

thanks

Is the LISA bonus pro-rata?

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