Lifetime ISAs guide

spotteddog

Zorillo said:

Also, if you're worried the government are going to stop the bonus, it would make more sense to grab it while you can rather than not take it while it continues to exist...

Thanks I’ve set one up now 😁 

dlumsd10

Can anyone advise if the Lifetime ISA is transferable?
I’d like to open one in my name for my 3x month old daughter, then transfer to her when she plans to buy her first house.
(don’t like JuniorISA in her own name as want to ensure the savings go towards a house).

eskbanker

dlumsd10 said:

Can anyone advise if the Lifetime ISA is transferable?
I’d like to open one in my name for my 3x month old daughter, then transfer to her when she plans to buy her first house.
(don’t like JuniorISA in her own name as want to ensure the savings go towards a house).

There are no ISAs that are transferable from one person to another.

There is almost an exception to this for inheriting spouse's ones but not relevant here....

Alexland

eskbanker said:

No ISAs are transferable from one person to another.

Probably a 'braino' but: No ISAs are not transferable from one person to another.

However there is nothing stopping you withdrawing from the LISA from age 60 and gifting the money inc bonuses to your children depending on how your ages line up. That's part of my plan as ours will be early 20s. Under the current rules we would also recycle some of the LISAs into my wife's pension until she is 75 for additional benefit.

eskbanker

Alexland said:

eskbanker said:

No ISAs are transferable from one person to another.

Probably a 'braino' but: No ISAs are not transferable from one person to another.

If I'd said "No, ISAs are transferable....", with a comma after the 'No', then I'd agree with your correction, but my reference to 'no ISAs' was an extension of the principle beyond LISAs specifically!

Alexland

Oh I read it the other way - apologies.

dlumsd10

Alexland said:

eskbanker said:

No ISAs are transferable from one person to another.

Probably a 'braino' but: No ISAs are not transferable from one person to another.

However there is nothing stopping you withdrawing from the LISA from age 60 and gifting the money inc bonuses to your children depending on how your ages line up. That's part of my plan as ours will be early 20s. Under the current rules we would also recycle some of the LISAs into my wife's pension until she is 75 for additional benefit.

Thanks for advice. If I cashed in the LISA myself at 60, wouldn’t that kill me on tax if I’m still working?

masonic

dlumsd10 said:

Alexland said:

eskbanker said:

No ISAs are transferable from one person to another.

Probably a 'braino' but: No ISAs are not transferable from one person to another.

However there is nothing stopping you withdrawing from the LISA from age 60 and gifting the money inc bonuses to your children depending on how your ages line up. That's part of my plan as ours will be early 20s. Under the current rules we would also recycle some of the LISAs into my wife's pension until she is 75 for additional benefit.

Thanks for advice. If I cashed in the LISA myself at 60, wouldn’t that kill me on tax if I’m still working?

No, you could withdraw the whole lot tax free. That wouldn't be treated as income, unlike a pension.

eskbanker

dlumsd10 said:

Alexland said:

eskbanker said:

No ISAs are transferable from one person to another.

Probably a 'braino' but: No ISAs are not transferable from one person to another.

However there is nothing stopping you withdrawing from the LISA from age 60 and gifting the money inc bonuses to your children depending on how your ages line up. That's part of my plan as ours will be early 20s. Under the current rules we would also recycle some of the LISAs into my wife's pension until she is 75 for additional benefit.

Thanks for advice. If I cashed in the LISA myself at 60, wouldn’t that kill me on tax if I’m still working?

No, the LISA itself wouldn't be taxable (that's the whole point of ISAs), although there are a couple of hopefully low-probability side-issues worth being aware of - gifting the proceeds could have an inheritance tax impact if you didn't make it to 67 for whatever reason, and its value would be considered to be an asset of yours while in your name, which could affect means-tested benefits, divorce settlements, etc (cheery thoughts all!)

dgray93

I currently have savings in a Lifetime ISA and looking to take the leap as a first time buyer within the next 12 months. I am also one of two beneficiaries in a will where i will inherit half of a property, from a recently deceased family member. The intention is to sell the inherited property and it has been addressed by HMT that this is OK as long as the property is sold and the cash proceeds go to you. Is there a way i can ensure i don't lose the 25% bonus due to losing my 'first-time buyer' status, due to technically being part-owner of the property? and is there a time-factor in terms of selling the house before i would automatically be assumed as a joint-owner? Any advice on how this works appreciated!