Lifetime ISAs guide

josephibbs93

I've initiated a transfer from my HTB ISA into my LISA and the process is underway. As I understand it this is against my 2017/18 allowances, so at this point should I be topping my LISA balance up to £4k? Then come 2018/19 I continue as normal with the new allowance?

Hi Dean,

Your 2017/18 allowance for your LISA is only eaten up but what you have contributed to your HTB ISA since 6 April 2017. So assuming you have put in £200/month since then, your LISA allowance has been eaten up by £2,400 (12 months inc. March) therefore you can top it up by £1,600 when it’s transferred over. Anything that you paid into your HTB before 5 April 2017 doesn’t count.

I did this exact thing; meaning that I currently have £7,600 in my LISA, all eligible for the bonus. That’s £4,000 from 2017/18 tax year, and £3,600 that I paid in before this tax year started. I’ll top up by another £4,000 on 6 April 2018, maximising the amount that I am eligible to get a bonus on.

josephibbs93

@Airliebird

Penalty free withdrawals cannot be used to cover legal fees. They can only be used for "defraying the purchase price for the acquisition of the residential property"

Damn... a higher deposit it is then!

Ladyjane26

Can anyone tell me why LISAs aren’t widely available yet? Waiting for out big names, such as Halifax, to provide them.

Alexland

Ladyjane26 wrote: »

Can anyone tell me why LISAs aren’t widely available yet? Waiting for out big names, such as Halifax, to provide them.

You have asked this twice. I have replied on your new thread:

http://forums.moneysavingexpert.com/showthread.php?t=5818192

Trojan_D079

If I buy a property while married but my wife has nothing to do with it, does that then mean she will still be a first time buyer?

Also in the future when we buy together can we still benefit from her first time buyer benefits and her LISA?

Thanks in advance

djpailo

Alexland wrote: »

Whoever you spoke to was misinformed, you are allowed to contribute up to £20k total per year across the 4 types of adult ISA (observing the special contribution limits that apply to HTB and LISA).

1) Cash ISA (inc HTB ISA)
2) S&S ISA
3) Lifetime ISA (cash or s&s)
4) IF ISA

So adding £4k to the LISA and £16k into one of the other 3 types of ISA would be fine.

Maybe they thought a LISA in cash was a type of Cash ISA such as a HTB ISA.

Still if they don't sell the LISA you can't blame them for not being trained on it.

Alex.

So does this mean you can open a Cash ISA and a Skipton Lifetime ISA (cash) in the same tax year? I think this is okay from what I've read, but I just want to be sure.

pink_pirlie

djpailo wrote: »

So does this mean you can open a Cash ISA and a Skipton Lifetime ISA (cash) in the same tax year? I think this is okay from what I've read, but I just want to be sure.

Yes, that is right. The lifetime ISA Is a different type to a regular cash ISA.

DeanMB

Following a transfer from H2B to LISA I've received an "ISA closure summary document". It outlines how I should claim my bonus and advises me to keep the letter to pass to my convayencer. Having transferred to a LISA will my new provider claim the bonus on my behalf and therefore I won't need to give the letter to anyone?

As I understand it the bonus on my H2B funds will be paid sometime before June and the process is automated as far as I'm concerned?

AirlieBird

DeanMB wrote: »

Following a transfer from H2B to LISA I've received an "ISA closure summary document". It outlines how I should claim my bonus and advises me to keep the letter to pass to my convayencer. Having transferred to a LISA will my new provider claim the bonus on my behalf and therefore I won't need to give the letter to anyone?

As I understand it the bonus on my H2B funds will be paid sometime before June and the process is automated as far as I'm concerned?

Under the HTB ISA scheme rules transferring a HTB ISA to a non-HTB ISA triggers the closure process where they are obligated to provide you with the closure documents needed to claim the bonus on a HTB ISA.

The bonus for money in a LISA, including transferred HTB ISAs, is an entirely different process and will be claimed by your provider.

Sussex_Dave

Hi,

Skipton who are my LISA provider advised have advised the first bonus will be paid on or before 4th May 2018 and we will be aiming to complete on or after the 11th May.

My conveyancer previously advised there is nothing they need to do and I took their word at first but on researching this further I see this is incorrect. I'm finding this really frustrating as I am steering them on the process and have sent links to the gov pages which also contain the declaration samples etc.

I'm expecting them to get to grips with this and then to be told I need to pay them a fee, but I don't think I should as it is me spending my own personal time researching this and pushing them to get a process in place.

Is anyone else going though this at the moment? What's your experience and can you help me understand anything I need to do? I guess I will be one of the first to buy using this.

Thanks
Dave