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  • FIRST POST
    • MSE Helen Saxon
    • By MSE Helen Saxon 16th Mar 16, 5:06 PM
    • 75Posts
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    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 37
    • Somerset La La La
    • By Somerset La La La 13th Jun 17, 3:32 PM
    • 383 Posts
    • 99 Thanks
    Somerset La La La
    Skipton text regarding my transfer request from Nutmeg (£100 as you are doing) - aim to transfer within next 30 days.

    I sent a H2B ISA form with the same envelope - no text about it, but that's listed online (if you go to Pay In, then pick on transfer a Cash ISA in - value is 0 as it's not been valued yet) - so far so good....

    1 - Yes (or my understanding is yes!). Although I've since been told it's questionable to open 2 LISAs in one year, something that Skipton's terms also appeared to suggest. But MSE clearly supported opening one ASAP to get the clock ticking then opening another... In either case I've not had any disputes from them, yet.

    2 - H2B ISA, if you transfer the entire amount in 1 go, everything prior to 5th April doesn't count towards this year's £4k anyway. So you're only being counted for whatever deposits you've made this year, and whatever interest you've had credited this year (e.g. £412 for me - 2 x £200 (May & June) and £12 interest).

    Work out what you've got remaining (£4000 minus the £100 deposited via Nutmeg (Share growth doesn't count as interest) minus H2B payments made this tax year).

    E.g. In my case, I believe I've got just under £3,500 of this years allowance left - which I'll transfer in bulk in March time (because of low interest rates)

    3 - Yea, straight away - particularly if you're planning to buy early on in the tax year.

    4 - I'm sure I read the monthly bonuses were to be credited soon after month end, starting in May - so if you deposited in April your bonus should be ready by early May.

    Your bonus for this tax year is added at/around the same time as the first bonus - so early May. I'd say any earlier than mid-May and you're probably cutting it a very fine with the bonus timings.

    I'm buying in October and essentially doing the same as you!
    Ex-Bankrupt, Discharged 09/2015
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    • Ed-1
    • By Ed-1 13th Jun 17, 3:48 PM
    • 1,940 Posts
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    Ed-1
    1 - Yes (or my understanding is yes!). Although I've since been told it's questionable to open 2 LISAs in one year, something that Skipton's terms also appeared to suggest.
    Originally posted by Somerset La La La
    You're not opening two cash LISAs in one year. A LISA is only open once it is funded. So you can 'open' a new one with nil balance and transfer another one in without a problem.

    It's the same as any other ISA in that respect.
    • eskbanker
    • By eskbanker 13th Jun 17, 3:50 PM
    • 5,318 Posts
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    eskbanker
    I'm sure I read the monthly bonuses were to be credited soon after month end, starting in May - so if you deposited in April your bonus should be ready by early May.

    Your bonus for this tax year is added at/around the same time as the first bonus - so early May.
    Originally posted by Somerset La La La
    LISA bonuses are correlated to claim periods, the first of which is the entire 2017/18 tax year and then subsequent claim periods are 6th of one month to the 5th of the next.

    Bonuses must be claimed by the ISA manager within 14 days of the end of the claim period, so the 2017/18 bonus must be claimed by 19 April 2018, but the bonus for the 6 April to 5 May period would then be claimed between 6 and 19 May, i.e. the first two bonuses would be a month apart not simultaneous.

    I haven't seen anything that clarifies the time between the ISA manager claiming the bonus and the government actually paying it, but Skipton suggests 28 days overall in http://www.skipton.co.uk/~/media/skipton-co-uk/pdf/savings/online-cash-LISA-terms-and-conditions.ashx:
    We will claim the 25% bonus from HMRC on your behalf. For the 2017/18 tax year, HMRC will pay the bonus within 28 days of 6 April 2018. From the 2018/19 tax year, onwards, HMRC will pay the bonus based on the contributions you have made each month. This will be paid by HMRC within 4-9 weeks
    • 29davidjones
    • By 29davidjones 13th Jun 17, 4:04 PM
    • 3 Posts
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    29davidjones
    Thank you very much guys.
    Last edited by 29davidjones; 13-06-2017 at 4:05 PM. Reason: Changed wording.
    • Heroine86
    • By Heroine86 13th Jun 17, 6:56 PM
    • 9 Posts
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    Heroine86
    Self Declared Figure
    Yea be careful on the forms... I'm not sure how friendly Skipton will be...

    They ask what was deposited this tax year... so for most, at this point, that'll be £400 (May & June... if you deposit on 1st of month).... but my figure was something like £412 because of the interest

    There is a term that says something along the lines of the transfer will be blocked if it exceeds your self declared figure.

    So in theory if you put £400, and it's £412, they'd reject it... so make sure you include all interest credited in this tax year.
    Originally posted by Somerset La La La
    Where did you read it? I cant find anything in terms. Thanks
    • Somerset La La La
    • By Somerset La La La 13th Jun 17, 7:01 PM
    • 383 Posts
    • 99 Thanks
    Somerset La La La
    LISA Transfer authority form on their website:

    http://www.skipton.co.uk/~/media/skipton-co-uk/pdf/savings/LISA-Transfer-Authority-Form.ashx?la=en-GB

    Transfer acceptance
    We are willing to accept this ISA transfer in line with the customer’s instructions above, as long as the following conditions have been met.
    • The transfer proceeds are made up of cash deposits only
    • We must receive the transfer proceeds no later than 30 days from the date on this form.
    • Where the customer wants to transfer subscriptions from the current tax year, these must not be more than the amount shown in question 5 above.


    Q5 =

    Have you subscribed to this ISA in this current tax year?
    If Yes, please enter the amount paid in this tax year: £



    Whether they'd invoke it to reject a transfer is anyone's guess - I doubt it for a small discrepancy (e.g. interest not included). It would look very bad for them.

    But be careful, as interest payments for the H2B technically are contributions. If there are any holdups, they may not accept the re-submitted form.

    I've sacrificed ~£55 interest just for the peace of mind that it goes through ASAP.
    Ex-Bankrupt, Discharged 09/2015
    Cap1 Platinum - Jul 2016, £4,000.... Consolidation game!
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    • Heroine86
    • By Heroine86 13th Jun 17, 8:33 PM
    • 9 Posts
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    Heroine86
    Thank you for pointing that out for me Much appreciated.
    • Ed-1
    • By Ed-1 13th Jun 17, 9:15 PM
    • 1,940 Posts
    • 1,038 Thanks
    Ed-1
    The LISA transfer form includes the line:

    "For the purposes of the transfer of the ISA wrapper under the ISA regulations, the date shown above will be the transfer date."

    So even if a transfer from a H2B ISA were to be initiated before 6th April 2018 but not complete until after 6th April 2018, pre-06/04/17 Help to Buy ISA funds would still not count towards the LISA limit.
    • smt34
    • By smt34 14th Jun 17, 10:44 AM
    • 2 Posts
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    smt34
    LISA 1 year clause
    Hi all,

    Apologies if this has already been asked/answered, tried searching for an answer without much success.

    Does anyone know how the 1 year clause exactly works?

    I opened a LISA in April. I now want a cash LISA.
    If I transfer the original LISA into a cash LISA, will the original date be honoured, or will the 'clock' reset?

    Thanks in advance!
    • Somerset La La La
    • By Somerset La La La 14th Jun 17, 11:12 AM
    • 383 Posts
    • 99 Thanks
    Somerset La La La
    Hi - As long as you do transfer the original LISA, the oldest date will be honoured.
    Ex-Bankrupt, Discharged 09/2015
    Cap1 Platinum - Jul 2016, £4,000.... Consolidation game!
    Aqua Reward (0.5% Cashback) - Nov 2016 - £1,950
    Vanquis Chrome 24.7% (rare use, want high limit reported) - July 2017, £1,000
    Drafty (Reports as a credit card!) - £300
    Rebuild for Mortgage (10/2018)
    • JenBeeps
    • By JenBeeps 14th Jun 17, 2:43 PM
    • 1 Posts
    • 0 Thanks
    JenBeeps
    LISA V Pension


    If you're a lower a rate taxpayer and your employer is already making the maximum contribution to your pension, does that mean a LISA becomes a good option - I.e. you're not missing out on 40% tax relief or pension contributions from your employer? I'm 40 next month, so thinking that at least if I open a LISA before my birthday I'll have it as an option to pay into until I'm 50? Thanks.
    • djc1234
    • By djc1234 14th Jun 17, 6:03 PM
    • 4 Posts
    • 0 Thanks
    djc1234
    Hi

    Apologies if this has already been answered.

    How does the bonus scheme work?

    If I put £4k into my LISA on the 1st April 2017 and another £4k on 1st May which are two different tax years. When can I 'claim' the £2k bonus? Do I have to wait until the
    • djc1234
    • By djc1234 14th Jun 17, 6:04 PM
    • 4 Posts
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    djc1234
    ... end of that tax year e.g. April 19?
    • djc1234
    • By djc1234 14th Jun 17, 6:06 PM
    • 4 Posts
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    djc1234
    Sorry that should have been 1st April 18 and 1st May 2018.
    • eskbanker
    • By eskbanker 14th Jun 17, 6:11 PM
    • 5,318 Posts
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    eskbanker
    Apologies if this has already been answered.
    Originally posted by djc1234
    Yes, see post #723 above.... You don't claim anything yourself, your ISA manager does it for you as part of running the product.
    • djc1234
    • By djc1234 14th Jun 17, 6:25 PM
    • 4 Posts
    • 0 Thanks
    djc1234
    Sorry, for the sake of clarity. If I put £4k in my LISA on 1st April 2018 and £4k on 1st May 2018. My fund manager can claim for the period and therefore full £8k to 6th May 2018 (which will be the subsequent claim period)?
    • eskbanker
    • By eskbanker 14th Jun 17, 6:30 PM
    • 5,318 Posts
    • 5,069 Thanks
    eskbanker
    Sorry, for the sake of clarity. If I put £4k in my LISA on 1st April 2018 and £4k on 1st May 2018. My fund manager can claim for the period and therefore full £8k to 6th May 2018 (which will be the subsequent claim period)?
    Originally posted by djc1234
    Your ISA manager would claim £1K bonus between 6 and 19 April for the 1 April £4K deposit, and then claim another £1K bonus between 6 and 19 May for the 1 May £4K deposit.
    • Blades1071
    • By Blades1071 14th Jun 17, 7:31 PM
    • 2 Posts
    • 0 Thanks
    Blades1071
    By March '18 I'll have £5,800 in my Help To Buy ISA. I'll transfer that into my LISA (opened today with £1) and add £1,799 to make the £4,000 allowance (£3,600 saved before 06/04/17 so only £2,200 towards the LISA allowance).

    I work out that would give me £1,900 bonus on £7,600 but won't be accessible until 14/06/18 (a year after opening LISA).

    So say I bought a house exactly one year from today - between April and June of 2018, could I deposit another £4,000 from my savings account as this would be into the 18/19 year? So I'd have £11,600.

    Basically, can you get the whole year's bonus even if you've only held it a couple months (into the second year)?
    • Ed-1
    • By Ed-1 14th Jun 17, 8:00 PM
    • 1,940 Posts
    • 1,038 Thanks
    Ed-1
    By March '18 I'll have £5,800 in my Help To Buy ISA. I'll transfer that into my LISA (opened today with £1) and add £1,799 to make the £4,000 allowance (£3,600 saved before 06/04/17 so only £2,200 towards the LISA allowance).

    I work out that would give me £1,900 bonus on £7,600 but won't be accessible until 14/06/18 (a year after opening LISA).

    So say I bought a house exactly one year from today - between April and June of 2018, could I deposit another £4,000 from my savings account as this would be into the 18/19 year? So I'd have £11,600.

    Basically, can you get the whole year's bonus even if you've only held it a couple months (into the second year)?
    Originally posted by Blades1071
    Yes it's a bonus, not interest. Interest is calculated on how long you've held the money; the bonus is calculated on how much you put in.
    • Blades1071
    • By Blades1071 14th Jun 17, 8:43 PM
    • 2 Posts
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    Blades1071
    That's great for us - strange though that you could just deposit £4,000 one day and the next day it would be effectively worth £5,000
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