Lifetime ISA tax year vs calendar year

Fern89

I’m struggling to find an answer to this question…

My husband and I recently opened a LISA each to save a deposit to buy our first house. I understand this has to be open for 12 calendar months before we can get the 25% government bonus.

Is it the case, however, that I could deposit £4K into the account this tax year (before April 2022), then another 4K next tax year (after April 2022), and in 12 months time withdraw while benefitting from the 25% bonus for each tax year (totalling £10k). Or would I have to wait another 12 calendar months?

Any advice greatly appreciated!

eskbanker

I think you've misunderstood - the 12 months relates to the period between opening the account and being able to access the money for a first-time property purchase without paying withdrawal penalties.  There is no 12 month condition relating to bonuses, which are paid roughly 4-8 weeks after each qualifying contribution to the account, so you can fund your accounts this tax year and next, benefit from the 25% bonuses to take the balances to £10K (plus interest) and withdraw the lot from this time next year onwards.

Fern89

eskbanker said:

I think you've misunderstood - the 12 months relates to the period between opening the account and being able to access the money for a first-time property purchase without paying withdrawal penalties.  There is no 12 month condition relating to bonuses, which are paid roughly 4-8 weeks after each qualifying contribution to the account, so you can fund your accounts this tax year and next, benefit from the 25% bonuses to take the balances to £10K (plus interest) and withdraw the lot from this time next year onwards.

Thank you. That’s what I thought but wanted to check. Great news! 

Alexland

eskbanker said:

so you can fund your accounts this tax year and next, benefit from the 25% bonuses to take the balances to £10K (plus interest) and withdraw the lot from this time next year onwards.

Just for clarity it's the solicitor that enables the withdrawal towards a qualifying property purchase.