Lifetime ISA

LauraJ88

I have just opened a Lifetime ISA. Unsure yet as to whether I will buy in less than 12 months or not so for now just opening with a very small initial deposit so not to lose the 25% fee on a large sum should I be in the position to move within 12 months.

I have large funds available for a house deposit that I can transfer to my Lisa. But wanting to know is the £4K max allowance per 12 months year or per tax year so for example if I was to put £4K in my Lisa before the end of this tax year in April could I then but another £4K after April 5/6th as this will be the next tax year allowance or do I have to wait 12 months from the date of the first £4K payment? Trying to think how I can maximise my bonus in a shorter period of time as other than seeing how a new job pans out I am in a position to move. Just not wanting to wait 2 years before being able to add money and wait for the bonus. I do have more than £8k to put in so will be frustrating if I have to wait every 12 months rather than per tax year to make my deposits.

Please help- I have a help to buy isa. But can wait a little longer if I need to before moving as the LISA offers a much more lucrative top up from the government with the larger allowance.

eskbanker

The £4K allowance is per tax year, so you can pay in up to £4K by 5 April 2019 and then another £4K from 6 April onwards.

LauraJ88

Guessing even if I did it the way I’ve suggested by depositing now and then after April 2019 I’d still have to wait until the end of the 19/20 tax year to get the 25% bonus anyway?

LauraJ88

But assuming that would give me the 8k higher amount sitting in for the 25% top up however it’s only paid at the end of the tax year is that right? So I would still have to wait til April 2020 to get the extra £2k from government?

eskbanker

LauraJ88 wrote: »

Guessing even if I did it the way I’ve suggested by depositing now and then after April 2019 I’d still have to wait until the end of the 19/20 tax year to get the 25% bonus anyway?

LauraJ88 wrote: »

But assuming that would give me the 8k higher amount sitting in for the 25% top up however it’s only paid at the end of the tax year is that right? So I would still have to wait til April 2020 to get the extra £2k from government?

No, the 25% bonus payments are made within 4-8 weeks of money being deposited - they were initially deferred to the end of the tax year as a one-off in the year the scheme was launched, but since April 2018 they've been paid out monthly and this will continue....

LauraJ88

Thank you. Really helpful.

LauraJ88

Sorry final question- at exchanging contracts and using the sum of the Lisa. Am I able to top up the Lisa amount with other savings or does the deposit have to come solely from the Lisa?

Alexland

You can give your solicitor other money to reduce the size of the required mortgage.