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  • FIRST POST
    • MSE Helen Saxon
    • By MSE Helen Saxon 16th Mar 16, 5:06 PM
    • 75Posts
    • 42Thanks
    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 haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.


    Thanks folks,
Page 12
    • Owen1991
    • By Owen1991 13th Mar 17, 11:13 AM
    • 6 Posts
    • 1 Thanks
    Owen1991
    I'm opening this account anyway to use as a first time buyer.

    However being in the military and not having to contribute to a pension, am i right in saying that this is an instance where its worth while using it for retirement too?
    • savings my hobby
    • By savings my hobby 13th Mar 17, 3:25 PM
    • 353 Posts
    • 444 Thanks
    savings my hobby
    still no news on interest rates, I remember the HTB ISA was quite generous, I doubt the LISA will be as generous, I assume 2%.
    Earn, Save and Achieve
    • FrustrationFull
    • By FrustrationFull 14th Mar 17, 9:42 AM
    • 29 Posts
    • 11 Thanks
    FrustrationFull
    The main question i have around this is what happens if it is pulled by future governments? Obviously there is no way to fully predict this but is there any precedent? My main concern is ploughing a lot in for future pension savings (currently 24 so some way off yet) and then the account being pulled and not earning the benefits that i could have done by putting the money into a different account. Does anyone have any idea?
    • greenglide
    • By greenglide 14th Mar 17, 10:25 AM
    • 2,783 Posts
    • 1,773 Thanks
    greenglide
    Obviously the government can change "anything" during the next 30 years or so!

    At least the LISA does have the good point that from 2018/2019 the "bonus" will be added monthly rather that waiting until you draw the money out. They could just stop the bonus on new money, re-brand it to "Ex LISA" or whatever.

    Presumably the ISA will not survive unchanged as a concept over the next 30 years! Time will tell.
    • maccamarsh
    • By maccamarsh 15th Mar 17, 9:15 AM
    • 2 Posts
    • 0 Thanks
    maccamarsh
    Can I switch from stock/shares to cash next year?
    I turn forty on 19th April so I need to get a Lifetime ISA opened more or less as they are launched on 6th April. It seems likely that only stocks and shares LISAs will be available on the launch date. I know I can only invest in one per tax year, so my question is if I open a stocks and shares LISA initially, can I transfer that money to a cash LISA from April 2018? Or am I stuck with the stocks and shares version until it pays up when I'm 60?

    Thanks for your thoughts...
    • Ed-1
    • By Ed-1 15th Mar 17, 9:38 AM
    • 1,938 Posts
    • 1,035 Thanks
    Ed-1
    I turn forty on 19th April so I need to get a Lifetime ISA opened more or less as they are launched on 6th April. It seems likely that only stocks and shares LISAs will be available on the launch date. I know I can only invest in one per tax year, so my question is if I open a stocks and shares LISA initially, can I transfer that money to a cash LISA from April 2018? Or am I stuck with the stocks and shares version until it pays up when I'm 60?

    Thanks for your thoughts...
    Originally posted by maccamarsh
    There's no distinction in law (although the regulations still haven't been made) between a cash and S&S LISA. A LISA is a LISA regardless of what the provider allows you to hold within it and you can transfer a LISA to a LISA.
    Last edited by Ed-1; 15-03-2017 at 11:13 AM.
    • redux
    • By redux 15th Mar 17, 11:11 AM
    • 16,955 Posts
    • 21,382 Thanks
    redux
    Judging by the Tory Government's policies. It wouldn't surprise me if they scrap the Lifetime ISA's in a couple of years.
    Originally posted by RyanEzio
    When George Osborne announced it, it looked a bit like a proxy or prototype for his wish to do something about pension scheme reform.

    The augmentation by bonus is rather akin to tax refund on contributions within a pension scheme ...
    Last edited by redux; 15-03-2017 at 11:14 AM.
    • maccamarsh
    • By maccamarsh 15th Mar 17, 12:25 PM
    • 2 Posts
    • 0 Thanks
    maccamarsh
    There's no distinction in law (although the regulations still haven't been made) between a cash and S&S LISA. A LISA is a LISA regardless of what the provider allows you to hold within it and you can transfer a LISA to a LISA.
    Originally posted by Ed-1
    Thank you Ed
    • hardleyouth
    • By hardleyouth 15th Mar 17, 2:46 PM
    • 382 Posts
    • 1,058 Thanks
    hardleyouth
    Stocks & Shares LISA - Fees?
    Any indication of what kind of platform charge fee the Stocks and Shares LISA providers might charge?


    I hold a S&S ISA (no L) with Hargreaves Lansdown, and have checked out their LISA page but there is no mention of what ongoing charges and fees they will levy for running the account?


    Are they to be fee free? Or is it simply that they haven't announced the fees?


    Ta,
    Chris
    • masonic
    • By masonic 15th Mar 17, 3:18 PM
    • 9,126 Posts
    • 6,273 Thanks
    masonic
    Are they to be fee free? Or is it simply that they haven't announced the fees?
    Originally posted by hardleyouth
    I'd assume they would be the same as the ISA fees unless they announce something different.
    • ISAISAbaby
    • By ISAISAbaby 15th Mar 17, 7:45 PM
    • 1 Posts
    • 0 Thanks
    ISAISAbaby
    If the 2017/18 LISA bonus is paid in a lump sum at the end of the year, is it possible to put the 4k in in the last week of the 17/18 tax year and still earn the whole bonus of 1k? This allows the 4k to earn interest somewhere else for the overwhelming majority of the tax year and not just sit idly for the whole year.
    • Ed-1
    • By Ed-1 15th Mar 17, 7:57 PM
    • 1,938 Posts
    • 1,035 Thanks
    Ed-1
    If the 2017/18 LISA bonus is paid in a lump sum at the end of the year, is it possible to put the 4k in in the last week of the 17/18 tax year and still earn the whole bonus of 1k? This allows the 4k to earn interest somewhere else for the overwhelming majority of the tax year and not just sit idly for the whole year.
    Originally posted by ISAISAbaby
    You can contribute when you want in a tax year. 25% of the amount contributed will be added in April 2018 and then 25% of the amount contributed in the prior month will be added from May 2018 onwards every month. You'll also get interest in the LISA at whatever rate offered by the provider.
    Last edited by Ed-1; 15-03-2017 at 8:07 PM.
    • Plus
    • By Plus 16th Mar 17, 12:52 AM
    • 217 Posts
    • 171 Thanks
    Plus
    Another provider saying they will launch a S&S LISA from 6th April is The Share Centre. No word on fees.
    • hardleyouth
    • By hardleyouth 16th Mar 17, 10:18 AM
    • 382 Posts
    • 1,058 Thanks
    hardleyouth
    I'd assume they would be the same as the ISA fees unless they announce something different.
    Originally posted by masonic

    If anyone is interested, I asked Hargreaves Lansdown what fees would be charged on their S&S LISA and below is the response (Masonic was right):



    The charges for our Lifetime ISA will be the same as our current Vantage Stocks & Shares ISA.

    The Vantage Stocks & Shares ISA has an annual management fee of 0.45% (capped at a maximum of £45 per annum). This fee is charged on shares, investment trusts, ETFs, gilts and single corporate bonds. Where a management fee applies on the Vantage ISA, this is calculated on the value of the underlying holdings that attract a fee on the last day of the month.

    There is a separate charging structure in place for funds held within Vantage, and this charge is applied across each Vantage account separately with no cap. For the first £250,000 of funds within each Vantage account, the charge will be 0.45% per annum. On the value of funds between £250,000 and £1m this will be 0.25% p.a. between £1m and £2m this will be 0.1% and there will be no charge on the value of funds above £2m.

    For more information on charges you are able to follow the attached link.
    • JJ01234
    • By JJ01234 16th Mar 17, 12:15 PM
    • 1 Posts
    • 0 Thanks
    JJ01234
    What happens if no banks offer the LISA
    Over the past week or so I have called round over 10 banks and none of them are offering the Lisa. I don't particularly want a s&s Isa, so what happens if no banks offer it? Will the scheme just be scrapped?
    • masonic
    • By masonic 16th Mar 17, 8:03 PM
    • 9,126 Posts
    • 6,273 Thanks
    masonic
    Over the past week or so I have called round over 10 banks and none of them are offering the Lisa. I don't particularly want a s&s Isa, so what happens if no banks offer it? Will the scheme just be scrapped?
    Originally posted by JJ01234
    Nobody can legally offer a LISA yet. It is not as though the legislation creating this product has been passed. I'm not really surprised most companies want some more time so that they know exactly what the regulatory requirements of these accounts will be. Several companies have committed to offering one from the start of next tax year, which is the most that could be hoped for at such an advanced stage.
    • Plus
    • By Plus 16th Mar 17, 10:55 PM
    • 217 Posts
    • 171 Thanks
    Plus
    If anyone is interested, I asked Hargreaves Lansdown what fees would be charged on their S&S LISA and below is the response (Masonic was right):
    Originally posted by hardleyouth
    Given the lack of options at this stage, HL might not be the worst for those who want to open one soon. But, for the limited amounts allowed to be invested in a LISA, the exit fees are going to bite.
    • sw2000sw
    • By sw2000sw 17th Mar 17, 6:20 AM
    • 1 Posts
    • 0 Thanks
    sw2000sw
    I read that you must get a mortgage alongside the LISA, thus cannot use it with cash to buy your first home. Is there any rules regarding the amount of the mortgage required? - I am hoping to have nearly enough cash to buy my home outright, so would be looking at a minimal mortgage.
    • badger09
    • By badger09 17th Mar 17, 3:53 PM
    • 5,112 Posts
    • 4,325 Thanks
    badger09
    If anyone is interested, I asked Hargreaves Lansdown what fees would be charged on their S&S LISA and below is the response (Masonic was right):
    Originally posted by hardleyouth
    "Quote:
    The charges for our Lifetime ISA will be the same as our current Vantage Stocks & Shares ISA.

    The Vantage Stocks & Shares ISA has an annual management fee of 0.45% (capped at a maximum of £45 per annum). This fee is charged on shares, investment trusts, ETFs, gilts and single corporate bonds. Where a management fee applies on the Vantage ISA, this is calculated on the value of the underlying holdings that attract a fee on the last day of the month.

    There is a separate charging structure in place for funds held within Vantage, and this charge is applied across each Vantage account separately with no cap. For the first £250,000 of funds within each Vantage account, the charge will be 0.45% per annum. On the value of funds between £250,000 and £1m this will be 0.25% p.a. between £1m and £2m this will be 0.1% and there will be no charge on the value of funds above £2m.

    For more information on charges you are able to follow the attached link."

    Is it just me or is that paragraph (my bold) of the reply from HL very misleading?
    • karl271186
    • By karl271186 17th Mar 17, 4:15 PM
    • 12 Posts
    • 3 Thanks
    karl271186
    Could we not just contribute £1 to a S&S LISA and just leave it in the account without actually investing it and then when a Cash LISA comes along transfer it out? That way we still get the 1 year countdown.
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