Lifetime ISAs guide
Comments
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Can anyone help me with a Q on the Year 2 allowance,
if i put 4k in LISA in Fy17-18 then in the first month of Fy18/19 (i.e April 2018) put in another 4k.
Can i purchase a house in May using the £8k I've put in and get 25% contribution OR will i have to wait until the end fy18/19 to get the 25% on the year 2 allowance?
Also i'm keen to get the clock ticking and want to start a LISA the day it comes out but i notice there is only stocks and shares, whats the best way of doing this with teh minimum investment? If i open a stocks and shares LISA can i then transfer it into a cash lifetime ISA?0 -
Can anyone help me with a Q on the Year 2 allowance,
if i put 4k in LISA in Fy17-18 then in the first month of Fy18/19 (i.e April 2018) put in another 4k.
Can i purchase a house in May using the £8k I've put in and get 25% contribution OR will i have to wait until the end fy18/19 to get the 25% on the year 2 allowance?
Also i'm keen to get the clock ticking and want to start a LISA the day it comes out but i notice there is only stocks and shares, whats the best way of doing this with teh minimum investment? If i open a stocks and shares LISA can i then transfer it into a cash lifetime ISA?
Bonuses will be paid monthly from April 2018 onwards. Yes, you can transfer between any two LISAs but you may find that one savings provider is ready to go on 6th April.0 -
I wonder if any can help, at the moment i've got a Help to Buy ISA which I opened as soon as they came out, now, I've read Martins guide about what to do, but I dont think I fit in any of the points. I plan to buy this time next year.
So, I have a Help to Buy ISA with the max amount you can have in it up to now.
I'm think of opening a LISA as you can save more in it - £4000 max
If I open a LISA and still keep topping up my HTB isa until next March 2018, am I right in thinking I could have max amount in my HTB isa and transfer it into my LISA as it doesnt contribute to the LISA limit? So i could have £4k LISA + around 6K from HTB? so nearly £10k?0 -
Anything you pay into your HTB ISA after 5th April will come out of your £4k LISA allowance when you transfer it.If I open a LISA and still keep topping up my HTB isa until next March 2018, am I right in thinking I could have max amount in my HTB isa and transfer it into my LISA as it doesnt contribute to the LISA limit? So i could have £4k LISA + around 6K from HTB? so nearly £10k?0 -
You can have the HTB balance you've already got at the end of this tax year (transferred into the LISA) and you can do £4000 extra into the LISA in 2017/18... whether it was added to a HTB or other type of ISA during 2017/18 and transferred over to the LISA, *or* paid direct to the LISA from your bank. So essentially you can have what you have in the HTB at 5-April 2017 plus £4k of new contributions.
What you can't have is whatever you have in the ISA at 5 April 2017 and £4k of new direct contributions in 16/17 *and* another £2400 of new HTB ISA contributions transferred in. If you are going to make ongoing contributions until the HTB I the new tax year and transfer them over, you will have to restrict what you put into the LISA by other means, to avoid getting over £4k of new contributions in the LISA on top the of the 5/4/2016 HTB balance.0 -
Sorry if this is a dumb question but is there anything to stop you having both the LISA and pension contributions?
I currently have a stakeholder pension which I have had just over 11 years (I pay around £102 a month, it rises each year with inflation ~ £209 a month estimated income at 65) + workplace pension (5% salary matched ~ £176 a month at 65).
I am moving jobs and the new place only has the government scheme which I will pay as much in as I can and makes sense for me to move the funds from the old scheme into another so I pay less in the way of charges) but does give a decent pay rise.
I was contemplating paying more into the stakeholder and opening a LISA as a savings fund to help at 60 while I work towards retirement. I am a lower rate tax payer if that helps0 -
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I am getting slightly nervous that Year End, and the start of this account, is only 9 days away, and I have yet to see an offering from one of the major banks. Do we have any information on this, or do we expect very last minute decisions from these competitors?0
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MSE say they'll update http://www.moneysavingexpert.com/savings/lifetime-ISAs#bestbuys once there's something to report but so far it's only Skipton who've said they'll launch and even then it won't be until June. As I understand it, the fine detail of the rules has only been confirmed very recently so it seems unlikely that anyone will be wading in at the last minute if a small player is going to take three months to be ready.I am getting slightly nervous that Year End, and the start of this account, is only 9 days away, and I have yet to see an offering from one of the major banks. Do we have any information on this, or do we expect very last minute decisions from these competitors?
Having said that, the major banks have deeper pockets and may be able and willing to throw resources at it to expedite a launch, but personally I wouldn't expect any cash LISA offerings to be available on 6 April....0 -
It makes sense I suppose, basically the government has shot itself in the foot trying to make this an amazing thing from 06/04, by not finalising anything.
From a consumer who jsut wants to use it to buy his first house, I presume the better option would be to stop any funds going into my HTB from now (The current amount can be transfered as per the rules) and save up towards the £4k to put in either when I open the account, or just before April 2018 (if the rates are dire now)0
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