Lifetime ISAs guide

badger09 · 8 July 2017 at 12:49PM

Katie-Jane wrote: »

Hi All,

Quick question;

I opened a Skipton LISA a few months ago and today I have opened one for my husband. He can't afford to save until he has cleared his debt. But there is nothing to stop me saving in it is there? They don't check where the money has come from right?

Thanks

No, there is nothing to stop you doing this, but the money will of course become his.

Just check Skipton's specific product T&C. Do they say funding must come from an account in your husband's name? If not, you can fund direct from your own account. If they do, you'll have to send the money via your husband's current account;)

Tyrone_Black · 8 July 2017 at 2:26PM

Could someone just quickly check over that my plan is correct:

- currently have the maximum in Halifax HTB ISA and am paying in the maximum
- opened Skipton LISA on launch day with £1
- transfer contents of HTB account to LISA in March 2018 (~£6,700)
- HTB ISA is now closed
- add £4k cash into the LISA
- in June 2018 when the LISA has been open a year I have £10,700 in there and can claim 25% on all of it (except potentially a little bit of interest?)

In fact, a couple of questions:
- Am I right in thinking that I don't actually need to claim anything, HMT will just drop the 25% bonus into the account at the end of the 2017/18 tax year?
- If I drop a further £4k into the account in the first day of the 2018/19 tax year, do I get the 25% bonus on that at the end of the month (April 2018)?

Ed-1 · 8 July 2017 at 2:36PM

Tyrone_Black wrote: »

Could someone just quickly check over that my plan is correct:

- currently have the maximum in Halifax HTB ISA and am paying in the maximum
- opened Skipton LISA on launch day with £1
- transfer contents of HTB account to LISA in March 2018 (~£6,700)
- HTB ISA is now closed
- add [STRIKE]£4k[/STRIKE] cash into the LISA
- in June 2018 when the LISA has been open a year I have [STRIKE]£10,700[/STRIKE] in there and can claim 25% on all of it (except potentially a little bit of interest?)

In fact, a couple of questions:
- Am I right in thinking that I don't actually need to claim anything, HMT will just drop the 25% bonus into the account at the end of the 2017/18 tax year?
- If I drop a further £4k into the account in the first day of the 2018/19 tax year, do I get the 25% bonus on that at the end of the month (April 2018)?

You can't add another £4k into the LISA this year as anything paid into the H2B ISA after 5th April 2017 counts towards the £4k LISA limit.

You're right with the questions.

Tyrone_Black · 8 July 2017 at 3:06PM

Great, that makes it a lot clearer. So I basically need to check how much I've put in the HTB since April 2017, top that up to £4k, then put another £4k in the LISA as soon as the new tax year starts?

Ed-1 · 8 July 2017 at 3:09PM

Tyrone_Black wrote: »

Great, that makes it a lot clearer. So I basically need to check how much I've put in the HTB since April 2017, top that up to £4k, then put another £4k in the LISA as soon as the new tax year starts?

Yes.........

jrees · 9 July 2017 at 1:52PM

Hi,
I have a query i really can't find the exact answer to on here or the various guides so hoping someone can help clarify for me please?

I currently own a house but will be buying a house with my partner who is a first time buyer. She has opened a LISA to start the clock ticking.

Lets assume we have £4k + £1k bonus in the LISA next year and want to buy a house.

My question is... can the LISA funds (and bonus) be used to pay Stamp Duty only?

As i already own a house i have enough equity to cover the traditional "deposit" so wouldn't need it for this. But it would be great to use on Stamp Duty. I can't seem to find a direct answer to this directly.

Thanks,

PeterTols · 9 July 2017 at 3:04PM

Anyone's help on this would be much appreciated.

My total final contribution to my HTB last financial year was £4200, I have transferred this over to my LISA. I have recently added an additional £4000 to my LISA, which now totals at £8200.

What bonus government bonus should I expect next year? £2050?

Thanks in advance!

eskbanker · 9 July 2017 at 5:02PM

jrees wrote: »

My question is... can the LISA funds (and bonus) be used to pay Stamp Duty only?

As i already own a house i have enough equity to cover the traditional "deposit" so wouldn't need it for this. But it would be great to use on Stamp Duty.

No, according to clause 9B.42 of HMRC's ISA rules:

the withdrawn funds are to be put towards the purchase price of a first time residential purchase

However, there isn't anything to stop you paying the stamp duty from your equity and filling the gap with the LISA funds, which, unlike the HTB equivalent, are available for pre-completion deposits.

eskbanker · 9 July 2017 at 5:04PM

PeterTols wrote: »

My total final contribution to my HTB last financial year was £4200, I have transferred this over to my LISA. I have recently added an additional £4000 to my LISA, which now totals at £8200.

What bonus government bonus should I expect next year? £2050?

Yes, £2,050, in late April or early May 2018. If you put another £4,000 in on or after 6 April 2018, you'd get another £1,000 bonus the following month too!

PeterTols · 9 July 2017 at 6:54PM

eskbanker wrote: »

Yes, £2,050, in late April or early May 2018. If you put another £4,000 in on or after 6 April 2018, you'd get another £1,000 bonus the following month too!

Thanks for your help :beer:

I did however receive a letter from my HTB provider, when the account was closed, saying I need to appoint a conveyancer to apply for the government bonus within 12 months. Can I ignore this and assume my LISA provider will sort the bonus?

Lifetime ISAs guide

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