Curious question on government bonus on LISA

Rudirobski

Hi guys

I'm struggling to find any clarity on this and hopefully someone can either confirm or shoot me straight down.

I'm planning on buying my first home with partner next year and want to get as much help as we can..so we are opening a cash LISA each.

Now..say I open a LISA today (which is currently the the 20/21 tax year) chuck a lump 4k in then get the 25% bonus 1000 - then when the next tax year starts in April next year, chuck in another 4k for another 1000 bonus. Then when the LISA has been open for 12 months next July we can put it into a deposit.

As I understand it states the bonus is paid each tax year so that's made me a bit curious if this could be done.

grumiofoundation

Yes that can be done.

eskbanker

Rudirobski said:

it states the bonus is paid each tax year so that's made me a bit curious if this could be done. 

Any such reference is likely to be a hangover from the early days of the product when it was relevant to differentiate the initial temporary arrangements that delayed bonus payments to the following tax year, but since the start of the 2018/19 tax year, the one-off bonuses are applied within about 4-8 weeks of each contribution.  There is the annual contribution limit you refer to, but there is no direct correlation between bonus payments and tax years as such....

Rudirobski

Yep got this confirmed today, it can be done.