LISA - Monthly 25% Bonus Payments
Hutchy96
Posts: 23
Forumite
Hi folks,
I have a few questions about the change from the lump sum 25% bonus at the end of the tax year, to the monthly payment of the bonus throughout the tax year.
If I paid in the maximum of £4000 on April 6th 2018, I would theoretically receive £83.33 as a bonus every month until April 2019 (£1000 bonus on the £4000).
My questions are...
1) If I paid in the full £4000 in June 2018, would the monthly contributions increase to £100 from June 2018 - April 2019, as I didn't pay in during the months of April or May 2018, but I should still receive the 25% bonus on the £4000 within the tax year?
2) Say I did put £4000 into the LISA in June 2018, then bought a house in October 2018 (LISA has been open longer than 12 months), would the maximum £1000 bonus still be paid, or because I am leaving the LISA before the end of the tax year, I would miss out on the remaining monthly bonuses?
Thanks in advance,
Adam
I have a few questions about the change from the lump sum 25% bonus at the end of the tax year, to the monthly payment of the bonus throughout the tax year.
If I paid in the maximum of £4000 on April 6th 2018, I would theoretically receive £83.33 as a bonus every month until April 2019 (£1000 bonus on the £4000).
My questions are...
1) If I paid in the full £4000 in June 2018, would the monthly contributions increase to £100 from June 2018 - April 2019, as I didn't pay in during the months of April or May 2018, but I should still receive the 25% bonus on the £4000 within the tax year?
2) Say I did put £4000 into the LISA in June 2018, then bought a house in October 2018 (LISA has been open longer than 12 months), would the maximum £1000 bonus still be paid, or because I am leaving the LISA before the end of the tax year, I would miss out on the remaining monthly bonuses?
Thanks in advance,
Adam
0
Comments
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No the bonus is 25% of the contribution you added so you would get the whole £1k bonus around May - the bonus is not spread.0
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Thanks for your quick responses and the link to the other thread.
This is a much better scenario.
Therefore, you could deposit £4000 in June 2018, receive the 25% government bonus in July/August 2018 (£1000) and then use the total amount (£5000) to buy a house in September 2018.
- Adam0 -
Yes provided all other conditions including the 12 month rule are ok.0
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