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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 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 41
    • Katie-Jane
    • By Katie-Jane 8th Jul 17, 8:56 AM
    • 28 Posts
    • 11 Thanks
    Katie-Jane
    Tilly,

    You cannot open more than one lifetime ISA in the same name, however if you are intended to buy a house with a partner they can open an ISA and both can be used towards the purchase.

    You can pay in monthly or as a lump-sum. For the first year the bonus will be paid in a lump-sum in April 2018. After that it will be paid in monthly.

    Hope that helps. :-)
    Currently paying off debt and saving a deposit for our first house
    • badger09
    • By badger09 8th Jul 17, 12:49 PM
    • 5,427 Posts
    • 4,662 Thanks
    badger09
    Hi All,

    Quick question;

    I opened a Skipton LISA a few months ago and today I have opened one for my husband. He can't afford to save until he has cleared his debt. But there is nothing to stop me saving in it is there? They don't check where the money has come from right?

    Thanks
    Originally posted by Katie-Jane
    No, there is nothing to stop you doing this, but the money will of course become his.

    Just check Skipton's specific product T&C. Do they say funding must come from an account in your husband's name? If not, you can fund direct from your own account. If they do, you'll have to send the money via your husband's current account
    • Tyrone Black
    • By Tyrone Black 8th Jul 17, 2:26 PM
    • 110 Posts
    • 252 Thanks
    Tyrone Black
    Could someone just quickly check over that my plan is correct:

    - currently have the maximum in Halifax HTB ISA and am paying in the maximum
    - opened Skipton LISA on launch day with £1
    - transfer contents of HTB account to LISA in March 2018 (~£6,700)
    - HTB ISA is now closed
    - add £4k cash into the LISA
    - in June 2018 when the LISA has been open a year I have £10,700 in there and can claim 25% on all of it (except potentially a little bit of interest?)

    In fact, a couple of questions:
    - Am I right in thinking that I don't actually need to claim anything, HMT will just drop the 25% bonus into the account at the end of the 2017/18 tax year?
    - If I drop a further £4k into the account in the first day of the 2018/19 tax year, do I get the 25% bonus on that at the end of the month (April 2018)?
    • Ed-1
    • By Ed-1 8th Jul 17, 2:36 PM
    • 2,036 Posts
    • 1,096 Thanks
    Ed-1
    Could someone just quickly check over that my plan is correct:

    - currently have the maximum in Halifax HTB ISA and am paying in the maximum
    - opened Skipton LISA on launch day with £1
    - transfer contents of HTB account to LISA in March 2018 (~£6,700)
    - HTB ISA is now closed
    - add £4k cash into the LISA
    - in June 2018 when the LISA has been open a year I have £10,700 in there and can claim 25% on all of it (except potentially a little bit of interest?)

    In fact, a couple of questions:
    - Am I right in thinking that I don't actually need to claim anything, HMT will just drop the 25% bonus into the account at the end of the 2017/18 tax year?
    - If I drop a further £4k into the account in the first day of the 2018/19 tax year, do I get the 25% bonus on that at the end of the month (April 2018)?
    Originally posted by Tyrone Black
    You can't add another £4k into the LISA this year as anything paid into the H2B ISA after 5th April 2017 counts towards the £4k LISA limit.

    You're right with the questions.
    • Tyrone Black
    • By Tyrone Black 8th Jul 17, 3:06 PM
    • 110 Posts
    • 252 Thanks
    Tyrone Black
    Great, that makes it a lot clearer. So I basically need to check how much I've put in the HTB since April 2017, top that up to £4k, then put another £4k in the LISA as soon as the new tax year starts?
    • Ed-1
    • By Ed-1 8th Jul 17, 3:09 PM
    • 2,036 Posts
    • 1,096 Thanks
    Ed-1
    Great, that makes it a lot clearer. So I basically need to check how much I've put in the HTB since April 2017, top that up to £4k, then put another £4k in the LISA as soon as the new tax year starts?
    Originally posted by Tyrone Black
    Yes.........
    • jrees
    • By jrees 9th Jul 17, 1:52 PM
    • 1 Posts
    • 0 Thanks
    jrees
    Hi,
    I have a query i really can't find the exact answer to on here or the various guides so hoping someone can help clarify for me please?

    I currently own a house but will be buying a house with my partner who is a first time buyer. She has opened a LISA to start the clock ticking.

    Lets assume we have £4k + £1k bonus in the LISA next year and want to buy a house.

    My question is... can the LISA funds (and bonus) be used to pay Stamp Duty only?

    As i already own a house i have enough equity to cover the traditional "deposit" so wouldn't need it for this. But it would be great to use on Stamp Duty. I can't seem to find a direct answer to this directly.

    Thanks,
    • PeterTols
    • By PeterTols 9th Jul 17, 3:04 PM
    • 9 Posts
    • 0 Thanks
    PeterTols
    Quick Question Hopefully!
    Anyone's help on this would be much appreciated.

    My total final contribution to my HTB last financial year was £4200, I have transferred this over to my LISA. I have recently added an additional £4000 to my LISA, which now totals at £8200.

    What bonus government bonus should I expect next year? £2050?

    Thanks in advance!
    • eskbanker
    • By eskbanker 9th Jul 17, 5:02 PM
    • 5,815 Posts
    • 5,707 Thanks
    eskbanker
    My question is... can the LISA funds (and bonus) be used to pay Stamp Duty only?

    As i already own a house i have enough equity to cover the traditional "deposit" so wouldn't need it for this. But it would be great to use on Stamp Duty.
    Originally posted by jrees
    No, according to clause 9B.42 of HMRC's ISA rules:
    the withdrawn funds are to be put towards the purchase price of a first time residential purchase
    However, there isn't anything to stop you paying the stamp duty from your equity and filling the gap with the LISA funds, which, unlike the HTB equivalent, are available for pre-completion deposits.
    • eskbanker
    • By eskbanker 9th Jul 17, 5:04 PM
    • 5,815 Posts
    • 5,707 Thanks
    eskbanker
    My total final contribution to my HTB last financial year was £4200, I have transferred this over to my LISA. I have recently added an additional £4000 to my LISA, which now totals at £8200.

    What bonus government bonus should I expect next year? £2050?
    Originally posted by PeterTols
    Yes, £2,050, in late April or early May 2018. If you put another £4,000 in on or after 6 April 2018, you'd get another £1,000 bonus the following month too!
    • PeterTols
    • By PeterTols 9th Jul 17, 6:54 PM
    • 9 Posts
    • 0 Thanks
    PeterTols
    Yes, £2,050, in late April or early May 2018. If you put another £4,000 in on or after 6 April 2018, you'd get another £1,000 bonus the following month too!
    Originally posted by eskbanker
    Thanks for your help

    I did however receive a letter from my HTB provider, when the account was closed, saying I need to appoint a conveyancer to apply for the government bonus within 12 months. Can I ignore this and assume my LISA provider will sort the bonus?
    • eskbanker
    • By eskbanker 9th Jul 17, 7:25 PM
    • 5,815 Posts
    • 5,707 Thanks
    eskbanker
    I did however receive a letter from my HTB provider, when the account was closed, saying I need to appoint a conveyancer to apply for the government bonus within 12 months. Can I ignore this and assume my LISA provider will sort the bonus?
    Originally posted by PeterTols
    I'd assume that the letter from the HTB provider was a generic one issued for any closure rather than specifically transfer to LISA - I take it you did use the LISA provider's transfer process?

    Assuming you did, then once within the LISA environment the pre-2017/18 tax year HTB money is treated the same as any other contribution (except for being allowed to exceed the annual allowance) and so the bonus will be paid by the LISA manager automatically at the start of the new tax year, regardless of when you'd be looking to make your property purchase (or even if you use it for other purposes).

    Pretty poor of your HTB provider to give misleading advice like that though - who was it?
    • PeterTols
    • By PeterTols 9th Jul 17, 7:59 PM
    • 9 Posts
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    PeterTols
    I'd assume that the letter from the HTB provider was a generic one issued for any closure rather than specifically transfer to LISA - I take it you did use the LISA provider's transfer process?

    Assuming you did, then once within the LISA environment the pre-2017/18 tax year HTB money is treated the same as any other contribution (except for being allowed to exceed the annual allowance) and so the bonus will be paid by the LISA manager automatically at the start of the new tax year, regardless of when you'd be looking to make your property purchase (or even if you use it for other purposes).

    Pretty poor of your HTB provider to give misleading advice like that though - who was it?
    That's what I assumed as well, but thought I would ask anyway. I did use the lifetime ISA transfer process.

    Just so you have some further information...
    (I have not included any interest occurred to keep it simple and because it does not affect the bonus)

    I opened my Halifax HTB in Dec 2015 and paid in the maximum, up until June 2017 (amounting to £4,800). In April 2017 I opened a Lifetime ISA with Hargreaves Lansdown with £4,000) At the start of this month I transfers my HTB to my Lifetime ISA using the transfer process.

    Hargreaves Lansdown put £4,200 into my Lifetime ISA and £600 into another account, as that was the amount I had paid in this financial year. This leaves me £8,200 in my Lifetime ISA.

    However after I had transferred the HTB to LISA I received this letter from Halifax
    "Help to Buy: ISA Closure Summary Document

    This letter confirms the closure of your Help to Buy: ISA on 4th July 2017

    If you'd like to claim your government bonus:

    Appoint a conveyancer to apply for, an receive payment of, the government bonus on your behalf. It's important that your conveyancer is one of the eligible conveyancers for the Help to Buy: ISA scheme. Your eligible conveyancer will need to see this document and we recommend you keep a copy for your own record
    The scheme administrator must receive the claim from your conveyancer with 12 months of the account closing date shown in this letter
    [It then states my account details including final balance]"

    The more concerning aspect of this, from my opinion, is within Hargreaves Lansdown online banking portal. Within the 'bonuses' tab of the Lifetime ISA menu it says "Bonuses due from HMRC: £1000"... even though I have £8200 in the LISA. I would expect to see £2050.

    Your thoughts would be valued please. I aim to call HL tomorrow to get some clarity.
    • Ed-1
    • By Ed-1 9th Jul 17, 8:26 PM
    • 2,036 Posts
    • 1,096 Thanks
    Ed-1
    That's what I assumed as well, but thought I would ask anyway. I did use the lifetime ISA transfer process.

    Just so you have some further information...
    (I have not included any interest occurred to keep it simple and because it does not affect the bonus)

    I opened my Halifax HTB in Dec 2015 and paid in the maximum, up until June 2017 (amounting to £4,800). In April 2017 I opened a Lifetime ISA with Hargreaves Lansdown with £4,000) At the start of this month I transfers my HTB to my Lifetime ISA using the transfer process.

    Hargreaves Lansdown put £4,200 into my Lifetime ISA and £600 into another account, as that was the amount I had paid in this financial year. This leaves me £8,200 in my Lifetime ISA.

    However after I had transferred the HTB to LISA I received this letter from Halifax
    "Help to Buy: ISA Closure Summary Document

    This letter confirms the closure of your Help to Buy: ISA on 4th July 2017

    If you'd like to claim your government bonus:

    Appoint a conveyancer to apply for, an receive payment of, the government bonus on your behalf. It's important that your conveyancer is one of the eligible conveyancers for the Help to Buy: ISA scheme. Your eligible conveyancer will need to see this document and we recommend you keep a copy for your own record
    The scheme administrator must receive the claim from your conveyancer with 12 months of the account closing date shown in this letter
    [It then states my account details including final balance]"

    The more concerning aspect of this, from my opinion, is within Hargreaves Lansdown online banking portal. Within the 'bonuses' tab of the Lifetime ISA menu it says "Bonuses due from HMRC: £1000"... even though I have £8200 in the LISA. I would expect to see £2050.

    Your thoughts would be valued please. I aim to call HL tomorrow to get some clarity.
    Originally posted by PeterTols
    Did you make April's deposit of £200 into the H2B ISA before or after 6th April 2017? The fact they've only allowed £4,200 more into the LISA suggests after? They should've also allowed interest accrued/paid up to 5th April 2017 into the LISA.

    As for the HL bonus balance due, it's obviously showing as wrong at the moment.
    • Ed-1
    • By Ed-1 9th Jul 17, 8:29 PM
    • 2,036 Posts
    • 1,096 Thanks
    Ed-1
    Pretty poor of your HTB provider to give misleading advice like that though - who was it?
    Originally posted by eskbanker
    Halifax may also be responsible for under-reporting the amount HL could put into the Lifetime ISA as interest up to 5th April 2017 is allowed on top of the £4,200 subscriptions to the H2B ISA.
    • PeterTols
    • By PeterTols 9th Jul 17, 8:32 PM
    • 9 Posts
    • 0 Thanks
    PeterTols
    Did you make April's deposit of £200 into the H2B ISA before or after 6th April 2017? The fact they've only allowed £4,200 more into the LISA suggests after? They should've also allowed interest accrued/paid up to 5th April 2017 into the LISA.

    As for the HL bonus balance due, it's obviously showing as wrong at the moment.
    Originally posted by Ed-1
    I made April's £200 deposit after 6th April. I did also receive the interest you mentioned, however I have not added it to the calculations as I didn't want to complicate it.


    (I have not included any interest occurred to keep it simple and because it does not affect the bonus)
    Do you think HL will correct the fault if I leave them to it? Or should I phone them, to make them aware?
    Last edited by PeterTols; 09-07-2017 at 8:36 PM.
    • Ed-1
    • By Ed-1 9th Jul 17, 8:36 PM
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    Ed-1
    I made April's £200 deposit after 6th April. I did also receive the interest you mentioned, however I have not added it to the calculations as I didn't want to complicate it.

    Do you think HL will correct the fault if I leave them to it? Or should I phone them, to make them aware?
    Originally posted by PeterTols
    That's reassuring then. It would be interesting to know whether they also allowed interest that had been accrued up to 5th April 2017 but not yet paid into the H2B ISA into the LISA? Did they only allow interest that had already been paid into the H2B ISA into the LISA do you know?

    You could ring HL to ask them about what's showing if you wanted but I'm sure the bonuses would be correctly paid in the end.
    • PeterTols
    • By PeterTols 9th Jul 17, 8:45 PM
    • 9 Posts
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    PeterTols
    So for exact figures, the HTB closed with £4,967.67...

    £4,367.67 got transferred into my LISA
    £ 600.00 got transferred into another account

    So in answer to your question, all interest accrued in my HTB (Even after 5th April) was transferred over to my LISA.

    I
    • Ed-1
    • By Ed-1 9th Jul 17, 8:46 PM
    • 2,036 Posts
    • 1,096 Thanks
    Ed-1
    So for exact figures, the HTB closed with £4,967.67...

    £4,367.67 got transferred into my LISA
    £ 600.00 got transferred into another account

    So in answer to your question, all interest accrued in my HTB (Even after 5th April) was transferred over to my LISA.

    I
    Originally posted by PeterTols
    Interesting breach of the regulations from Halifax then...
    • PeterTols
    • By PeterTols 9th Jul 17, 8:52 PM
    • 9 Posts
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    PeterTols
    I would assume it is HL that is at fault, as it was their decision to put £600 into my 'loyalty bonus' account (other account).

    - I have just looked back at this and there is actually £595 in that 'loyalty bonus' account. Someone is having a tinker. (The LISA account value has not changed)
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