Lifetime ISAs guide

Alexland

Kreacher wrote: »

I had a HTB which I've maxed out every month including the initial month and then opened a Nutmeg LISA with £100 when they became available.

I transferred my nutmeg LISA to Skipton followed by my HTB (£6,481.60) and my current LISA balance is £6581.57

In March 2017 my HTB balance was £4495.03, meaning this year I've added 2,086.44 (£6581.57 - £4495.03).

Meaning that I can top up my LISA by £1,913.56 before April (£4000-£2,086.44)?

Anything in the HTB ISA from previous tax year(s) does not count towards this year's limit.

If transferring a HTB ISA to a LISA the maximum you can contribute this tax year across both accounts plus any interest paid on the HTB ISA this tax year (excluding any interest earned in the previous tax year but paid in this tax year) is £4k.

So if you have contributed £100 to the LISA and £2,000 to the HTB then the amount you can still contribute to the LISA is £4000 - £100 - £2000 = £1,900 minus the interest earned this tax year.

The interest earned this tax year will be any interest paid this tax year (minus any proportion of that payment earned in the last tax year) plus the final interest payment on transfering the old account.

Alex

Alexland

livelaughlovedancesing wrote: »

Hi Woodaay, did you find an answer to this in the end? Can't see one in the thread.

The problem is that you are not allowed to transfer part of your split Cash ISA contributions for this year into another type of ISA. Under ISA rules you must transfer both parts which may not be possible (without partial withdrawal from the regular part) if it exceeds the LISA limit for this year.

Alexland

Dai11 wrote: »

I opened a lifetime ISA in April 2017, and I am in the process of purchasing a new build property which will be completed in June or July of this year. Exchange is set to be around late March.

Do I have to use my lifetime ISA at exchange (effectively ruling me out of any bonus) or can I wait until prior to completion (and claim the 25% in April?Thanks,

Talk to your conveyancer about if an exchange deposit is required by the seller. If it is required then consider if you have enough money outside the LISA to pay the exchange deposit. If not and you need to draw on the LISA in March (as you are unable to delay exchange) then you will not have held the LISA for 12 month so will not get a bonus. The first bonus is due in late April or early May.

Dai11

Alexland wrote: »

Talk to your conveyancer about if an exchange deposit is required by the seller. If it is required then consider if you have enough money outside the LISA to pay the exchange deposit. If not and you need to draw on the LISA in March (as you are unable to delay exchange) then you will not have held the LISA for 12 month so will not get a bonus. The first bonus is due in late April or early May.

Thanks, I’ve got enough money to cover the initial deposit at exchange so was only wondering if it was possible to leave the lifetime isa until completion and therefore claim the bonus in April / May

PGorg

Alexland wrote: »

Do you have any details of the 'lodge' that you could share? Are you talking about lodgings (where you rent a room in a shared property) or actually buying a property?

You would usually know if you are aquiring an interest in land as it is usually very expensive.

Alex

Once Again thanks, you are really helping me "building" this idea, and what I need to think about.

My ideia is really acquire the lodge and the land, has an investment. At the moment I can't afford to buy the house I would like, and I need a 3 beedroom's house.

What I google was this kind of lodge:
vvvvvvvvv.rightmove.co.uk/property-for-sale/property-52470900.html
(not allowed to post links, sorry)

I'm waiting to be contacted, however a friend told me that this kind of lodge are more used for holidays, not for permanente housing, because they usually close one, or more moths during the year. I will research a little more, maybe is just not possible.

Alexland

Dai11 wrote: »

Thanks, I’ve got enough money to cover the initial deposit at exchange so was only wondering if it was possible to leave the lifetime isa until completion and therefore claim the bonus in April / May

Should be possible to leave the money in the LISA a bit longer then until it is both 12 months old and the bonus has paid. You might even be able to make another contribution from 6th April and get additional bonus. Talk to your conveyencer about cashflow and when they would need to draw upon the LISA funding probably a bit before completion as you don't want to risk the day of completion.

Alexland

PGorg wrote: »

My ideia is really acquire the lodge and the land, has an investment. At the moment I can't afford to buy the house I would like, and I need a 3 beedroom's house.

What I google was this kind of lodge:
vvvvvvvvv.rightmove.co.uk/property-for-sale/property-52470900.html
(not allowed to post links, sorry)

I'm waiting to be contacted, however a friend told me that this kind of lodge are more used for holidays, not for permanent housing, because they usually close one, or more moths during the year. I will research a little more, maybe is just not possible.

It's in the "for sale" part of Rightmove so it looks like you would be acquiring an interest in the land. If so that would mean you are no longer a first time buyer for the next property.

CGP

I was a residual beneficiary of an estate which included a property. The property was sold during probate and the money split between the other residual beneficiaries. Would I still count as a first time buyer?

eskbanker

CGP wrote: »

I was a residual beneficiary of an estate which included a property. The property was sold during probate and the money split between the other residual beneficiaries. Would I still count as a first time buyer?

My understanding is that yes, you'd still count as a first time buyer if you didn't actually take formal ownership of (part of) a property by being named on deeds, etc, so if the property was sold before you had an actual legal stake in it then you're OK....

NAD57891

Alexland wrote: »

The problem is that you are not allowed to transfer part of your split Cash ISA contributions for this year into another type of ISA. Under ISA rules you must transfer both parts which may not be possible (without partial withdrawal from the regular part) if it exceeds the LISA limit for this year.

Looks like I'm in a mess then?

I understand what you're saying. This wasn't obvious to myself and I wasn't told this by Nationwide either. I thought this years subscription into a H2B transfers into the £4K Lifetime ISA allowance but the split Cash ISA is the issue.

I have just transferred a Nationwide H2B to HL Lifetime ISA.

The problem I have now is that I put money into both a Cash ISA and the H2B this tax year with Nationwide. I didn't move the money from this years subscription out of the H2B into the Cash ISA before transferring. The Cash ISA remains with Nationwide.

Why did they allow the transfer of the H2B in full... I'm going to have to ring around but I can't see how this can be easily rectified.