Lifetime ISAs

SavingStudent1

Hi all,

I was just wondering how the contributions in the Lifetime ISA if I buy a stocks and shares ISA?

For example, suppose I just created it and have no money inside currently. Now, I know that the bonuses is paid monthly, and so if I put invested £4000 over the tax year, will I get a 25% bonus of £1000 from the government, regardless of how my money fluctuated in the investment?

For example, if I contributed £1000 in the period (month) from 6th December to 5th January, will I get a bonus of £250 for it (even if on 5th January, my pot is worth less/more e.g. that £1000 is now say £800 or £1200 because the investment declined/rised?

So, essentially, my question is that is the bonus based on your contribution over the month (which is £1000) or the difference in your balance between that period (which can vary according to how the investment performs)?

Thank you

masonic

Yes, it is based on what you pay in, not the performance of investments.

Opera12

SavingStudent1 said:

Hi all,

I was just wondering how the contributions in the Lifetime ISA if I buy a stocks and shares ISA?

For example, suppose I just created it and have no money inside currently. Now, I know that the bonuses is paid monthly, and so if I put invested £4000 over the tax year, will I get a 25% bonus of £1000 from the government, regardless of how my money fluctuated in the investment?

For example, if I contributed £1000 in the period (month) from 6th December to 5th January, will I get a bonus of £250 for it (even if on 5th January, my pot is worth less/more e.g. that £1000 is now say £800 or £1200 because the investment declined/rised?

So, essentially, my question is that is the bonus based on your contribution over the month (which is £1000) or the difference in your balance between that period (which can vary according to how the investment performs)?

Thank you

Yes you would get it. depends on the final amount, not the process

eskbanker

Opera12 said:

SavingStudent1 said:

Hi all,

I was just wondering how the contributions in the Lifetime ISA if I buy a stocks and shares ISA?

For example, suppose I just created it and have no money inside currently. Now, I know that the bonuses is paid monthly, and so if I put invested £4000 over the tax year, will I get a 25% bonus of £1000 from the government, regardless of how my money fluctuated in the investment?

For example, if I contributed £1000 in the period (month) from 6th December to 5th January, will I get a bonus of £250 for it (even if on 5th January, my pot is worth less/more e.g. that £1000 is now say £800 or £1200 because the investment declined/rised?

So, essentially, my question is that is the bonus based on your contribution over the month (which is £1000) or the difference in your balance between that period (which can vary according to how the investment performs)?

Thank you

Yes you would get it. depends on the final amount, not the process

Not sure if that was intended to clarify, but (as pointed out two weeks ago) the LISA bonus is 25% of contributions - I don't even know what you mean by 'the final amount' in this context but it sounds like the wrong answer....

grumiofoundation

Opera12 said:

SavingStudent1 said:

Hi all,

I was just wondering how the contributions in the Lifetime ISA if I buy a stocks and shares ISA?

For example, suppose I just created it and have no money inside currently. Now, I know that the bonuses is paid monthly, and so if I put invested £4000 over the tax year, will I get a 25% bonus of £1000 from the government, regardless of how my money fluctuated in the investment?

For example, if I contributed £1000 in the period (month) from 6th December to 5th January, will I get a bonus of £250 for it (even if on 5th January, my pot is worth less/more e.g. that £1000 is now say £800 or £1200 because the investment declined/rised?

So, essentially, my question is that is the bonus based on your contribution over the month (which is £1000) or the difference in your balance between that period (which can vary according to how the investment performs)?

Thank you

Yes you would get it. depends on the final amount, not the process

Are you sure you are talking about a lifetime ISA (not HTB ISA?)

As above the LISA bonus is not paid on the final amount, but on the contributions.