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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 havenít already, join the forum to reply. If you arenít sure how it all works, read our New to Forum? Intro Guide.


    Thanks folks,
Page 39
    • NevvyC
    • By NevvyC 19th Jun 17, 10:25 AM
    • 35 Posts
    • 1 Thanks
    NevvyC
    When HMRC run their compliance programme after the end of the tax year and discover invalid ISAs, after confirming their discovery with you, they will issue a discovery notice to the ISA provider. This will inform them to treat the invalid subscriptions as if they weren't in an ISA. This means any income or growth from them will be taxable. Lifetime ISA bonuses will also be repaid to HMRC.

    HMRC can "repair" invalid subscriptions that are within the annual allowance by instructing the ISA manager of a date from which the invalid subscriptions can restart having an ISA tax exemption.

    Where over the annual allowance HMRC will instruct the ISA provider to remove subscriptions that are over the £20k/£4k allowance.


    However, when you transfer current year subscriptions in an ISA, those subscriptions are treated as having been made with the new ISA manager, and never with the original ISA manager. Indeed, if the old ISA is fully transferred to another ISA manager it will not be included in the end of year reporting to HMRC and so as far as HMRC are concerned you only hold the one ISA.
    Originally posted by isasmurf

    Great. Thanks for the insight...

    So to confirm, essentially there will be no negative repercussions if a current tax year LISA with subscriptions is transferred (and closed) to another current tax year LISA also with subscriptions...?

    As on paper it will just appear as £100 & £1 paid into the same LISA in May & June, respectively...

    Thanks
    • J2Khan
    • By J2Khan 19th Jun 17, 10:28 AM
    • 2 Posts
    • 0 Thanks
    J2Khan
    LISA - Cash / Stocks and Shares
    Hello

    I think ive read somewhere that one may opt for both a cash AND stocks and shares LISA

    Can anyone shed light on this please?

    Thanks
    JK
    • eskbanker
    • By eskbanker 19th Jun 17, 12:15 PM
    • 4,730 Posts
    • 4,468 Thanks
    eskbanker
    Hello

    I think ive read somewhere that one may opt for both a cash AND stocks and shares LISA

    Can anyone shed light on this please?

    Thanks
    JK
    Originally posted by J2Khan
    Anyone can read post #751 above, which confirms that one may not do this (in terms of paying new money into both in the same tax year), although in subsequent posts it's clarified that if you transfer one into the other before the end of the tax year then it's unlikely to be an issue if this is just a temporary situation....
    • chudleyette
    • By chudleyette 19th Jun 17, 3:21 PM
    • 60 Posts
    • 7 Thanks
    chudleyette
    LISA for remortgage?
    My partner is 37 and has never owned a home. He's just moved in with me (to the house I own with a mortgage) and I'm wondering whether if he gets a LISA he can use it for if we want to re-mortgage together?
    • eskbanker
    • By eskbanker 19th Jun 17, 3:33 PM
    • 4,730 Posts
    • 4,468 Thanks
    eskbanker
    This came up in another thread recently and the view was that a LISA wouldn't be applicable just for a simple straightforward remortgage, but only for a full property sale/purchase process (i.e. involving conveyancers/solicitors).
    • Owen1991
    • By Owen1991 19th Jun 17, 4:08 PM
    • 6 Posts
    • 1 Thanks
    Owen1991
    I recently sent the paper work off to transfer my Barclays H2B into my new Skipton ISA.

    The money has been transferred today but it's left my Barclays H2B ISA overdrawn.

    what should I do? Or will this get corrected automatically?
    • eskbanker
    • By eskbanker 19th Jun 17, 4:30 PM
    • 4,730 Posts
    • 4,468 Thanks
    eskbanker
    I recently sent the paper work off to transfer my Barclays H2B into my new Skipton ISA.

    The money has been transferred today but it's left my Barclays H2B ISA overdrawn.

    what should I do? Or will this get corrected automatically?
    Originally posted by Owen1991
    I suspect the transfer will have included accrued closing interest that won't have been credited to the account yet, does the amount involved suggest that? If this is the case, then it should self-correct....
    • Owen1991
    • By Owen1991 19th Jun 17, 4:41 PM
    • 6 Posts
    • 1 Thanks
    Owen1991
    I suspect the transfer will have included accrued closing interest that won't have been credited to the account yet, does the amount involved suggest that? If this is the case, then it should self-correct....
    Originally posted by eskbanker
    Ye it does, I presumed that what it was anyway, mainly wanted to know if it would self correct
    • Somerset La La La
    • By Somerset La La La 19th Jun 17, 6:44 PM
    • 379 Posts
    • 98 Thanks
    Somerset La La La
    I recently sent the paper work off to transfer my Barclays H2B into my new Skipton ISA.

    The money has been transferred today but it's left my Barclays H2B ISA overdrawn.

    what should I do? Or will this get corrected automatically?
    Originally posted by Owen1991
    Barclays being strange with closing interest. I had the same. It disappeared from my online banking the following day, but presume it will be corrected and the closing statement will be correct!

    Skipton H2B ISA Transfer from Barclays was completed today. Just waiting for Nutmeg now, which takes longer as it's S&S.

    Nutmeg dashboard shows a pending withdrawal of £0.00! I'm hoping they only transfer my LISA, which is what I've requested on the form and via PM - as I have an ordinary savings account open for £170 cashback. If they transfer that I'll lose the cashback
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    • NevvyC
    • By NevvyC 20th Jun 17, 10:37 AM
    • 35 Posts
    • 1 Thanks
    NevvyC
    Barclays being strange with closing interest. I had the same. It disappeared from my online banking the following day, but presume it will be corrected and the closing statement will be correct!

    Skipton H2B ISA Transfer from Barclays was completed today. Just waiting for Nutmeg now, which takes longer as it's S&S.

    Nutmeg dashboard shows a pending withdrawal of £0.00! I'm hoping they only transfer my LISA, which is what I've requested on the form and via PM - as I have an ordinary savings account open for £170 cashback. If they transfer that I'll lose the cashback
    Originally posted by Somerset La La La

    £170 cashback?! Is that a current/savings account incentive?! Not seen that one on MSE ... :/ and I keep a close eye on things !
    • Owen1991
    • By Owen1991 20th Jun 17, 11:11 AM
    • 6 Posts
    • 1 Thanks
    Owen1991
    All sorted, H2B ISA fully closed today, didn't need to do anything about going overdrawn from interest.
    • EnglishPhil
    • By EnglishPhil 21st Jun 17, 6:08 PM
    • 1 Posts
    • 0 Thanks
    EnglishPhil
    Apologies if this seems a daft question, but from what I understand £1 paid into a LISA today followed by £3999 in March will see a £1000 bonus payable (subject to the criteria etc.) on an average balance of around £2.50 for the whole year. Is that right?
    • eskbanker
    • By eskbanker 21st Jun 17, 8:07 PM
    • 4,730 Posts
    • 4,468 Thanks
    eskbanker
    Apologies if this seems a daft question, but from what I understand £1 paid into a LISA today followed by £3999 in March will see a £1000 bonus payable (subject to the criteria etc.) on an average balance of around £2.50 for the whole year. Is that right?
    Originally posted by EnglishPhil
    Yes, you could strictly pay in the £3,999 on 5 April 2018 and receive the £1,000 bonus later in the month (or maybe early May) - it's a bonus rather than interest and so isn't proportional to the length of time involved.

    Likewise, when bonuses are payable monthly from the 2018/19 tax year, the turnaround time from contribution to bonus will be very small even for those not trying to optimise it!
    • CrustyB
    • By CrustyB 22nd Jun 17, 11:02 AM
    • 1 Posts
    • 0 Thanks
    CrustyB
    I created a cash LISA a month ago and wanted to open a normal cash ISA (and transfer the funds from an old cash ISA into it) and was told by the people at charter savings bank that I can't put money into a cash LISA and a normal cash ISA in the same year, from what I've read that isn't correct but if that's what they're saying then what am I supposed to do?
    • darren72
    • By darren72 22nd Jun 17, 11:03 AM
    • 948 Posts
    • 172 Thanks
    darren72
    I created a cash LISA a month ago and wanted to open a normal cash ISA (and transfer the funds from an old cash ISA into it) and was told by the people at charter savings bank that I can't put money into a cash LISA and a normal cash ISA in the same year, from what I've read that isn't correct but if that's what they're saying then what am I supposed to do?
    Originally posted by CrustyB
    Yes, they are different products so you can put money into both.

    Just ignore them and go ahead regardless.
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