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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 28
    • Heroine86
    • By Heroine86 19th Apr 17, 8:07 PM
    • 9 Posts
    • 0 Thanks
    Heroine86
    Hello,
    Im sorry if someone asked this question already...
    Can i have and pay into it in the same tax year Help to buy CASH ISA and Lifetime CASH ISA?
    Thank you.
    • masonic
    • By masonic 19th Apr 17, 8:49 PM
    • 9,126 Posts
    • 6,273 Thanks
    masonic
    Hello,
    Im sorry if someone asked this question already...
    Can i have and pay into it in the same tax year Help to buy CASH ISA and Lifetime CASH ISA?
    Thank you.
    Originally posted by Heroine86
    Cash ISAs and LISAs are different types of ISA. There is only one type of LISA, so yes you can pay into both.
    • Heroine86
    • By Heroine86 19th Apr 17, 9:07 PM
    • 9 Posts
    • 0 Thanks
    Heroine86
    What do you mean by there is only one type of Lifetime ISA? Sorry :/
    • Ed-1
    • By Ed-1 19th Apr 17, 9:12 PM
    • 1,938 Posts
    • 1,034 Thanks
    Ed-1
    What do you mean by there is only one type of Lifetime ISA? Sorry :/
    Originally posted by Heroine86
    In law, there are 4 types of ISA, each of which you can pay into one of in each tax year.

    These are a cash ISA, a stocks and shares ISA, an innovative finance ISA and a lifetime ISA.

    The Lifetime ISA was provided for by these regulations, amending the Individual Savings Account Regulations 1998:

    http://www.legislation.gov.uk/uksi/2017/466/contents/made

    A Help to Buy ISA is defined to be a special case of a cash ISA.

    A Lifetime ISA is not - it's a separate type of ISA in the legislation - but it can contain cash (or stocks and shares).
    • Heroine86
    • By Heroine86 19th Apr 17, 9:20 PM
    • 9 Posts
    • 0 Thanks
    Heroine86
    Thank you both for your help. I will continue to pay into help to buy and wait till June to open Lifetime one.
    • eskbanker
    • By eskbanker 19th Apr 17, 11:30 PM
    • 5,277 Posts
    • 5,026 Thanks
    eskbanker
    Hello,
    Im sorry if someone asked this question already...
    Can i have and pay into it in the same tax year Help to buy CASH ISA and Lifetime CASH ISA?
    Thank you.
    Originally posted by Heroine86
    Thank you both for your help. I will continue to pay into help to buy and wait till June to open Lifetime one.
    Originally posted by Heroine86
    Worth reading http://www.moneysavingexpert.com/savings/lifetime-ISAs#property6 (and the rest of that whole page) to learn about using HTB then LISA, with the various limitations involved in doing so, such as 2017/18 HTB contributions counting towards the £4K LISA allowance.
    • Heroine86
    • By Heroine86 20th Apr 17, 5:47 AM
    • 9 Posts
    • 0 Thanks
    Heroine86
    Worth reading [...](and the rest of that whole page) to learn about using HTB then LISA, with the various limitations involved in doing so, such as 2017/18 HTB contributions counting towards the £4K LISA allowance.
    Originally posted by eskbanker
    Thank you Ive read that one but coudnt find anything about both accounts set as Cash ISA.
    • adonis10
    • By adonis10 20th Apr 17, 10:55 AM
    • 1,386 Posts
    • 148 Thanks
    adonis10
    I have a s&s ISA with Hargreaves Lansdown currently and am considering opening a LISA and wonder if I do so with HL, can it be used to invest in funds/shares alongside my current s&s ISA? I am thinking no as one can only open one of each type of ISA (cash, s&s etc.).
    • eskbanker
    • By eskbanker 20th Apr 17, 12:03 PM
    • 5,277 Posts
    • 5,026 Thanks
    eskbanker
    I have a s&s ISA with Hargreaves Lansdown currently and am considering opening a LISA and wonder if I do so with HL, can it be used to invest in funds/shares alongside my current s&s ISA? I am thinking no as one can only open one of each type of ISA (cash, s&s etc.).
    Originally posted by adonis10
    Given your 'etc', you should be thinking 'yes', see post #544 above....
    • adonis10
    • By adonis10 20th Apr 17, 12:09 PM
    • 1,386 Posts
    • 148 Thanks
    adonis10
    Given your 'etc', you should be thinking 'yes', see post #544 above....
    Originally posted by eskbanker
    Makes sense. So, effectively, I could pay into the same fund in both the s&s isa and the lisa?
    • ian-d
    • By ian-d 20th Apr 17, 12:54 PM
    • 367 Posts
    • 87 Thanks
    ian-d
    Makes sense. So, effectively, I could pay into the same fund in both the s&s isa and the lisa?
    Originally posted by adonis10
    Yes, they are two different products; what you do within them is entirely up to you.
    • mm84
    • By mm84 20th Apr 17, 9:47 PM
    • 2 Posts
    • 0 Thanks
    mm84
    Hi all,

    I have opened a Lifetime ISA account (cash) with HL, adding £300 to it, just to start the clock. How is the government calculating the bonus in 2017/2018, is it based on the amount available at the end of the tax year (5th April 2018)? Or are they calculating the bonus monthly, based on the amount invested in LISA?

    I would like to invest £3700 elsewhere until end of March 2018, and then top up LISA to £4000 and get £1000 bonus Would that work?

    The same question for 2018/2019, as the Gov has mentioned bonus will be paid monthly, I assume that the bonus will be calculated based on the amount invested, so if you want to have full £1000 bonus, you will have to have £4000 invested from April 2018 onwards (and get £83.33 bonus each month)?

    Thanks.
    • Ed-1
    • By Ed-1 20th Apr 17, 10:35 PM
    • 1,938 Posts
    • 1,034 Thanks
    Ed-1
    Hi all,

    I have opened a Lifetime ISA account (cash) with HL, adding £300 to it, just to start the clock. How is the government calculating the bonus in 2017/2018, is it based on the amount available at the end of the tax year (5th April 2018)? Or are they calculating the bonus monthly, based on the amount invested in LISA?

    I would like to invest £3700 elsewhere until end of March 2018, and then top up LISA to £4000 and get £1000 bonus Would that work?

    The same question for 2018/2019, as the Gov has mentioned bonus will be paid monthly, I assume that the bonus will be calculated based on the amount invested, so if you want to have full £1000 bonus, you will have to have £4000 invested from April 2018 onwards (and get £83.33 bonus each month)?

    Thanks.
    Originally posted by mm84
    The bonus is paid on the amount contributed during the period before the bonus is paid. It's not interest so it doesn't matter when you pay it in as long as it's there before the next bonus is paid, otherwise the bonus will be paid the next time round etc.

    So whatever you contribute in the 2017/18 tax year will get a bonus in May 2018.

    The bonus periods will be monthly from 2018/19. So contribute £4,000 in the first month and you'll get the full bonus of £1,000 at the end of that month.
    • mm84
    • By mm84 21st Apr 17, 7:55 AM
    • 2 Posts
    • 0 Thanks
    mm84
    Thanks a lot for the prompt and clear reply. Nice opportunity to earn interest and gov bonus in this tax year.
    • NevvyC
    • By NevvyC 21st Apr 17, 6:43 PM
    • 37 Posts
    • 1 Thanks
    NevvyC
    Presumably your parents aren't putting down the whole mortgage deposit, so I can't see it being an issue. Even if they were buying jointly with you it wouldn't be a problem. All you need to do is make sure the proceeds from your HTB ISA or LISA are actually included in the funds used at completion and the property is in your name.
    Originally posted by masonic

    Just to go back to this -- is there anyway to confirm this ? As I wouldn't want to scrimp & save + live off of baked beans & pasta for the year only to find out I couldn't use my hard earned LISA savings (and moreover, negate a bonus!) if I went with the Barclays Springboard and it couldn't also be used in conjunction with the LISA scheme ? Just want to get 100% certainty - who would be best to approach about this ; Barclays themselves, an independent mortgage broker, mortgage advice beareau etc. ? Thanks in advance!
    • masonic
    • By masonic 21st Apr 17, 6:46 PM
    • 9,126 Posts
    • 6,273 Thanks
    masonic
    Just to go back to this -- is there anyway to confirm this ? As I wouldn't want to scrimp & save + live off of baked beans & pasta for the year only to find out I couldn't use my hard earned LISA savings (and moreover, negate a bonus!) if I went with the Barclays Springboard and it couldn't also be used in conjunction with the LISA scheme ? Just want to get 100% certainty - who would be best to approach about this ; Barclays themselves, an independent mortgage broker, mortgage advice beareau etc. ? Thanks in advance!
    Originally posted by NevvyC
    Your solicitor/conveyancer would be the one able to confirm. They are responsible for consolidating the funds used for the purchase. It is their actions that will determine whether the LISA money can be used.
    • LOLLABEE
    • By LOLLABEE 22nd Apr 17, 7:57 PM
    • 7 Posts
    • 3 Thanks
    LOLLABEE
    Planning for Lifetime ISA Switch
    Hi All,

    I am saving to buy my first house, so opened the Halifax HTB ISA on its opening date in Dec 2015.
    Have since saved the max (1200 first month, then 200 per month) to date.
    I have also been saving an additional amount into a (non-ISA) savings account as wanted to save more than 200 per month. By April 2018 This would roughly equate to £8,000 additional savings.

    I was hoping (like many others) that the LISA would be more simple, and a cash account affair. Due to the 'damp squibby-ness' of the LISA release, I have been hesitant to commit to a S&S LISA because all options mean a loss of money (transfer fees etc).

    From looking at previous posts and advice this page, I just want to check the following plan of action:

    • Wait to open a cash ISA, any will do so long as it doesn't charge to transfer money in. Open with minimum (June-ish 2017) and set the 12 months going.
    • March 2018, transfer in my HTB balance. By then it should be £6800 or so (including interest)
    • Also transfer £4000 from my other save to buy account into the LISA.
    • Get 25% Bonus on £10,800 (+2,700)
    • Then after April 6th transfer another £4,000 from my other savings account. And get the 25% bonus on:
    £10,800 + 2,700 + 4,000 = 17,500

    (I think this is only 25% on the latest 4,000 for the 2018/19 tax year, so add 1,000)
    • This would make £18,500 overall?
    I wouldn't be able to put any more in that year, but would have the max bonus as quick as possible- and able to start to buy a house when the 12 months lock in finished with a deposit of £18,500?


    Any recommendations are welcome on the above.
    Not in a massive rush to buy, but would like to make use of the bonus.


    Thanks




    • Ed-1
    • By Ed-1 22nd Apr 17, 9:12 PM
    • 1,938 Posts
    • 1,034 Thanks
    Ed-1
    Hi All,

    I am saving to buy my first house, so opened the Halifax HTB ISA on its opening date in Dec 2015.
    Have since saved the max (1200 first month, then 200 per month) to date.
    I have also been saving an additional amount into a (non-ISA) savings account as wanted to save more than 200 per month. By April 2018 This would roughly equate to £8,000 additional savings.

    I was hoping (like many others) that the LISA would be more simple, and a cash account affair. Due to the 'damp squibby-ness' of the LISA release, I have been hesitant to commit to a S&S LISA because all options mean a loss of money (transfer fees etc).

    From looking at previous posts and advice this page, I just want to check the following plan of action:

    • Wait to open a cash ISA, any will do so long as it doesn't charge to transfer money in. Open with minimum (June-ish 2017) and set the 12 months going.
    • March 2018, transfer in my HTB balance. By then it should be £6800 or so (including interest)
    • Also transfer £4000 from my other save to buy account into the LISA.
    • Get 25% Bonus on £10,800 (+2,700)
    • Then after April 6th transfer another £4,000 from my other savings account. And get the 25% bonus on:
    £10,800 + 2,700 + 4,000 = 17,500

    (I think this is only 25% on the latest 4,000 for the 2018/19 tax year, so add 1,000)
    • This would make £18,500 overall?
    I wouldn't be able to put any more in that year, but would have the max bonus as quick as possible- and able to start to buy a house when the 12 months lock in finished with a deposit of £18,500?


    Any recommendations are welcome on the above.
    Not in a massive rush to buy, but would like to make use of the bonus.


    Thanks




    Originally posted by LOLLABEE
    Anything paid into the Help to Buy ISA after 5th April 2017 counts against the £4,000 LISA limit for 2017/18 when transferred across. So you can either transfer just previous year contributions from the Help to Buy ISA and pay in £4,000 extra money to the LISA and keep the Help to Buy ISA for its higher interest rate but you wouldn't ve anle to get the bonus on it.
    Last edited by Ed-1; 22-04-2017 at 9:14 PM.
    • snowqueen555
    • By snowqueen555 23rd Apr 17, 5:39 PM
    • 688 Posts
    • 490 Thanks
    snowqueen555
    ISA's changing so fast.

    So if I open a LISA with HL (I already have a SS ISA with them and just plan to transfer 4k from one to another), can I keep contributing to my HSBC HTB ISA?
    • eskbanker
    • By eskbanker 23rd Apr 17, 5:54 PM
    • 5,277 Posts
    • 5,026 Thanks
    eskbanker
    So if I open a LISA with HL (I already have a SS ISA with them and just plan to transfer 4k from one to another), can I keep contributing to my HSBC HTB ISA?
    Originally posted by snowqueen555
    Yes, but you can't get the 25% bonus on 2017/18 contributions to both your HTB and your LISA, see http://www.moneysavingexpert.com/savings/lifetime-ISAs#property6
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