Lifetime ISAs guide

AirlieBird

masonic wrote: »

True, but the AJ Bell LISA was funded by a transfer of subscriptions spanning 3 tax years. Two of which do not break the 'invalid combination of ISAs' rule.

Doesn't matter which year it relates to. The regulations specify that if you make a current year payment or a pre April 2017 HTB ISA transfer to more than one Lifetime ISA only one account is a valid account eligible for the bonus.

masonic

AirlieBird wrote: »

Doesn't matter which year it relates to. The regulations specify that if you make a current year payment or a pre April 2017 HTB ISA transfer to more than one Lifetime ISA only one account is a valid account eligible for the bonus.

Yes you are right, I had to go back to the original legislation to check this as the HMRC's ISA Guidance Notes have been replaced with a help page that is vague on this point.

http://www.legislation.gov.uk/uksi/2017/466/made
"New Regulation 4AA
9. After regulation 4A insert
...
(4) Where an investor has made current year payments or a payment described in regulation 10A(4)(c) to more than one Lifetime ISA, only one account will be a valid account which is eligible for the payment of a government bonus."

"New regulation 10A
21. After regulation 10 insert
...
(4) The following are not current year payments
...
(c)the first or only transfer from a Help to Buy ISA (as described in regulation 5DDC(6)) to a Lifetime ISA in the year 2017-18 in an amount not exceeding the balance on the Help to Buy ISA as at 5th April 2017 plus accrued interest."

AirlieBird

masonic wrote: »

Do you have a link to the source of the information stating this (specifically that then current year subscriptions for 2017/18 AND HTB ISA transfer funds must reside together)? I see HMRC have got rid of the usual ISA Guidance Notes document and replaced it with a more vague help page.

I'm not sure it is in the guidance notes. It is in the legislation.

http://www.legislation.gov.uk/uksi/2017/466/regulation/9/made
(4) Where an investor has made current year payments or a payment described in regulation 10A(4)(c) to more than one Lifetime ISA, only one account will be a valid account which is eligible for the payment of a government bonus.

Where regulation 10A(4)(c) is
http://www.legislation.gov.uk/uksi/2017/466/regulation/21/made
(c)the first or only transfer from a Help to Buy ISA (as described in regulation 5DDC(6)) to a Lifetime ISA in the year 2017-18 in an amount not exceeding the balance on the Help to Buy ISA as at 5th April 2017 plus accrued interest.

masonic

AirlieBird wrote: »

I'm not sure it is in the guidance notes. It is in the legislation.

Thanks, that's exactly where I went just after making my post and it looks like I didn't edit it quite quickly enough to save you the trouble of looking it up as well.

Rdh181

Thanks both - that’s really helpful (and also not the answer I was hoping for, oh well!).

madfistbt

hello peeps, i used my 20k allaownce this year on funding circle, do i have to wait till the next tax year to get a lisa? xx

eskbanker

madfistbt wrote: »

hello peeps, i used my 20k allaownce this year on funding circle, do i have to wait till the next tax year to get a lisa? xx

If you have one or more ISAs funded before this tax year then you could open a LISA now and transfer up to £4K from prior year's contributions, but otherwise, yes, you'd be stuck until April next year, because your current year money can't be split up but is much higher than the annual LISA allowance....

Alexland

The other option would be to withdraw £16k plus any interest from FC (unsure if they would allow or apply penalties) and transfer the £4k (but not a penny more) FC IFISA into a LISA.

madfistbt

oh thank you great replies, so next year i can put 16k in my isa and 4k for a lisa? thanks

Owen1991

Just wondering if anyones had 18/19 bonus paid in yet, I know it's still early?