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  • FIRST POST
    • Henbill
    • By Henbill 10th Jan 18, 3:25 PM
    • 2Posts
    • 0Thanks
    Henbill
    Does a lifetime ISA holding get assessed against benefit eligibility
    • #1
    • 10th Jan 18, 3:25 PM
    Does a lifetime ISA holding get assessed against benefit eligibility 10th Jan 18 at 3:25 PM
    Hi, New on the forum. I have searched but can't find anything on this issue. Last year I invested £4,000 in a LTA as a gift to my son for use to buy his council house sometime in the future. He is currently in work but never seems to be able to hold down a job for long which results in chaotic problems when going back on Universal Credit. I want to invest another £4,000 this year but I am worried it will be counted as an asset as the holding will be over £9,000 with interest and government grant. Does anyone know if this money would be counted as an asset and reduce his benefit if he lost his job? To have to draw on this money to live on would incur substantial penalties and would not be what it is intended for. Thanks
Page 1
    • Ed-1
    • By Ed-1 10th Jan 18, 3:49 PM
    • 1,997 Posts
    • 1,112 Thanks
    Ed-1
    • #2
    • 10th Jan 18, 3:49 PM
    • #2
    • 10th Jan 18, 3:49 PM
    Hi, New on the forum. I have searched but can't find anything on this issue. Last year I invested £4,000 in a LTA as a gift to my son for use to buy his council house sometime in the future. He is currently in work but never seems to be able to hold down a job for long which results in chaotic problems when going back on Universal Credit. I want to invest another £4,000 this year but I am worried it will be counted as an asset as the holding will be over £9,000 with interest and government grant. Does anyone know if this money would be counted as an asset and reduce his benefit if he lost his job? To have to draw on this money to live on would incur substantial penalties and would not be what it is intended for. Thanks
    Originally posted by Henbill
    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/553333/Lifetime_ISA_technical_note_September_2016_update. pdf

    Yes:

    welfare and social care means tests, which will take the surrender value of Lifetime ISA funds into account as individual capital

    The "surrender value" is the Lifetime ISA holding less 25% charge to withdraw.
    • Henbill
    • By Henbill 10th Jan 18, 4:14 PM
    • 2 Posts
    • 0 Thanks
    Henbill
    • #3
    • 10th Jan 18, 4:14 PM
    • #3
    • 10th Jan 18, 4:14 PM
    Thanks for clarifying.
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