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Lifetime ISAs guide
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Generally boat "Mortgages" are just loans - not actual mortgages. That's because boats are an absolute nightmare to finance because they can be fine one day (£100,000) and sunk (£0+scrap) the next. I'm sure someone more knowledgeable will probably say something different, but I wouldnt get your hopes up...
A little aside...
Not to do with your choice, but it's worth taking a look at the real cleverness behind this from the Treasury. If people use a LISA rather than a pension, as it comes from taxed income it gets the Treasury tax revenue now. If people put it in a pension, the Treasury has to wait years until it gets tax. So, this could be Mr Osborne cleverly grabbing cash out of future Chancellors' pockets.
I do not really understand this because it also says that the bonus is paid at the end of the tax year so surely it is only delaying the tax refund for up to a year.
I have a couple of questions about the soon to be introduced LISAs:
- If I invest £4k in Y1 (and get £1k on top), and then invest £4k in Y2 (so have £9k in total), will I get a bonus of 25% on £9k or just the £4k that I have invested in Y2?
- If I merge the amount I have in my H2B ISA when I open a LISA in Apr 17, will I get 25% interest on that at the end of Y1?
Thanks,
DanH19
You just get the 25% bonus on your contributions (up to 4k) each year. However you get the 25% on the full balance of money transferred from a Help to Buy ISA if it is transferred in tax year 17/18. Moreover Help to Buy money deposited prior to 6 April 2017 and transferred into a LISA does not count against the 4k LISA allowance in Y1. So you can get the bonus on a maximum of 8.4k +'any interest transferred over from the Help to Buy ISA in Y1 as 4.4k + interest is the maximum you can transfer over from a Help to Buy ISA without it counting against the LISA allowance.
I understand you can only save £4k a year (each). We're looking to save about £2k a month each so obviously we'd fill up own LISA's in about 4 months... so we'd need a plan for what to do after we've filled them.
Can you still hold a standard ISA alongside a LISA? Is it a separate product like the H2B ISA?
Virgin Money CC £1,538.16 left of £8,500 // 81.9% paid
Smart watch £41.30 left of £249.99 // 83.5% paid
Santander CC £4,537.50 of £5,555 // 18.3% paid
Emma mattress £505.44 / £505.44 // 100%
MBNA CC £400.14 / £ 400.14 // 100%
Car loan £671.98 / £671.98 // 100%
Neyber loan £2,657.65 / £2,657.65 // 100%
Buy a house in 2021 £10,010.99 of £42,500 / 23.6%
LISAs filled for 20/21 on 27/10/2020
Save for tax bill: £848 / £5,923 // 14.3%
I work for a large company who has a defined benefit pension (final salary). I have been paying in to since I was 18. I will be 37 when the LISA in introduced.
I already have bought my first home. So would only be able to draw on the LISA when I am 60.
Would it be worth investing in a LISA? and can you have an ISA as well as a LISA? At the moment I have savings in an ISA for maybe one day moving to a bigger property.
Hopefully someone will have the answers.
Cheers
Adam
The H2B ISA isn't a separate product - it's a cash ISA so you can only pay into one cash ISA per year. The lifetime ISA however is a separate product so you can pay into that and a cash ISA in the same year.