Lifetime ISAs guide

Ed-1

Somerset_La_La_La wrote: »

1 - Yes (or my understanding is yes!). Although I've since been told it's questionable to open 2 LISAs in one year, something that Skipton's terms also appeared to suggest.

You're not opening two cash LISAs in one year. A LISA is only open once it is funded. So you can 'open' a new one with nil balance and transfer another one in without a problem.

It's the same as any other ISA in that respect.

eskbanker

Somerset_La_La_La wrote: »

I'm sure I read the monthly bonuses were to be credited soon after month end, starting in May - so if you deposited in April your bonus should be ready by early May.

Your bonus for this tax year is added at/around the same time as the first bonus - so early May.

LISA bonuses are correlated to claim periods, the first of which is the entire 2017/18 tax year and then subsequent claim periods are 6th of one month to the 5th of the next.

Bonuses must be claimed by the ISA manager within 14 days of the end of the claim period, so the 2017/18 bonus must be claimed by 19 April 2018, but the bonus for the 6 April to 5 May period would then be claimed between 6 and 19 May, i.e. the first two bonuses would be a month apart not simultaneous.

I haven't seen anything that clarifies the time between the ISA manager claiming the bonus and the government actually paying it, but Skipton suggests 28 days overall in http://www.skipton.co.uk/~/media/skipton-co-uk/pdf/savings/online-cash-LISA-terms-and-conditions.ashx:

We will claim the 25% bonus from HMRC on your behalf. For the 2017/18 tax year, HMRC will pay the bonus within 28 days of 6 April 2018. From the 2018/19 tax year, onwards, HMRC will pay the bonus based on the contributions you have made each month. This will be paid by HMRC within 4-9 weeks

29davidjones

Thank you very much guys.

Heroine86

Somerset_La_La_La wrote: »

Yea be careful on the forms... I'm not sure how friendly Skipton will be...

They ask what was deposited this tax year... so for most, at this point, that'll be £400 (May & June... if you deposit on 1st of month).... but my figure was something like £412 because of the interest

There is a term that says something along the lines of the transfer will be blocked if it exceeds your self declared figure.

So in theory if you put £400, and it's £412, they'd reject it... so make sure you include all interest credited in this tax year.

Where did you read it? I cant find anything in terms. Thanks

[Deleted User]

LISA Transfer authority form on their website:

http://www.skipton.co.uk/~/media/skipton-co-uk/pdf/savings/LISA-Transfer-Authority-Form.ashx?la=en-GB

Transfer acceptance
We are willing to accept this ISA transfer in line with the customer’s instructions above, as long as the following conditions have been met.
• The transfer proceeds are made up of cash deposits only
• We must receive the transfer proceeds no later than 30 days from the date on this form.
• Where the customer wants to transfer subscriptions from the current tax year, these must not be more than the amount shown in question 5 above.


Q5 =

Have you subscribed to this ISA in this current tax year?
If Yes, please enter the amount paid in this tax year: £



Whether they'd invoke it to reject a transfer is anyone's guess - I doubt it for a small discrepancy (e.g. interest not included). It would look very bad for them.

But be careful, as interest payments for the H2B technically are contributions. If there are any holdups, they may not accept the re-submitted form.

I've sacrificed ~£55 interest just for the peace of mind that it goes through ASAP.

Heroine86

Thank you for pointing that out for me Much appreciated.

Ed-1

The LISA transfer form includes the line:

"For the purposes of the transfer of the ISA wrapper under the ISA regulations, the date shown above will be the transfer date."

So even if a transfer from a H2B ISA were to be initiated before 6th April 2018 but not complete until after 6th April 2018, pre-06/04/17 Help to Buy ISA funds would still not count towards the LISA limit.

smt34

Hi all,

Apologies if this has already been asked/answered, tried searching for an answer without much success.

Does anyone know how the 1 year clause exactly works?

I opened a LISA in April. I now want a cash LISA.
If I transfer the original LISA into a cash LISA, will the original date be honoured, or will the 'clock' reset?

Thanks in advance!

[Deleted User]

Hi - As long as you do transfer the original LISA, the oldest date will be honoured.

JenBeeps

LISA V Pension


If you're a lower a rate taxpayer and your employer is already making the maximum contribution to your pension, does that mean a LISA becomes a good option - I.e. you're not missing out on 40% tax relief or pension contributions from your employer? I'm 40 next month, so thinking that at least if I open a LISA before my birthday I'll have it as an option to pay into until I'm 50? Thanks.