Lifetime ISA Bonus Question

tashalove

Hi guys, sorry if this is a silly question and if it has already been asked before.
I am thinking of opening a LISA before tax year ends and intend to put in max 4,000 as a lump sum.  Would I receive the full 25% bonus on this amount end of this month/April as the bonus is paid monthly?  Thanks.

Alexland

You get a 25% bonus based on the contributions you make each month with maximum contribution(s) of £4k per tax year which ends on 5th April.

So each month the LISA provider looks at the total contributions you made between the 6th of the previous month and the 5th of the current month and submits a claim to the government for the 25% bonus. When the government pays the LISA provider they put the money in your account. This claim process takes around a month depending on the LISA provider.

So the bonus is added 1-2 months after the contribution depending on when the contribution occurred.

tashalove

@Alexland That's great, thanks for your concise reply!!