Lifetime isa

Jazzo111

Hey friends, hope you are all well. Just a quick one for you proper basic as well probably. If I open a lifetime isa now a cash one. Would o receive the government 25% bonus this tax year if I throw loads into it? I’m thinking I would have to have it open a year? And if I can is there any suggestions on good ones? Any help will be appreciated

masonic

You won't receive the bonus this tax year, but the bonus claim will be made during April and you'd receive it towards the end of April. Bonus claims are made monthly. There are some best buys listed here:

https://www.moneysavingexpert.com/savings/lifetime-isas/#bestbuys

Remember that you do have to have it open for a year in order to make a penalty free withdrawal if buying your first home.

badger09

Jazzo111 said:

Hey friends, hope you are all well. Just a quick one for you proper basic as well probably. If I open a lifetime isa now a cash one. Would o receive the government 25% bonus this tax year if I throw loads into it? I’m thinking I would have to have it open a year? And if I can is there any suggestions on good ones? Any help will be appreciated

I wonder why you asked about the bonus this tax year. 

In case you’ve misunderstood, the £4k annual (tax year) limit relates to the money you can pay in. The govt bonus doesn’t affect the limit, so if you can afford to, you could pay in £4k now and another £4k on or after 6 April. So, by June you could have £10k in there. 

grumiofoundation

Jazzo111 said:

Hey friends, hope you are all well. Just a quick one for you proper basic as well probably. If I open a lifetime isa now a cash one. Would o receive the government 25% bonus this tax year if I throw loads into it? I’m thinking I would have to have it open a year? And if I can is there any suggestions on good ones? Any help will be appreciated

Loads is limited to 4k per tax year. 

You have to have it open a year to be able to make a penalty free withdrawal to buy a property. if you are savings for retirement a stocks and shares LISA will be more suitable. 

By April 7th 2023 you will have been able to contribute 12k - so 15k with bonus by May/June 2023.

P1Fanatic

As above (presuming you are under the age of 40 currently) if you move quickly and open one for 2021-22 tax year with max £4k contribution (counts towards you overall annual ISA allowance of £20k in case you have other ISAs) and then another £4k on April 6th or after then you will get both bonuses of £1k and a total of £12k.

Presumably (as you mention Cash LISA) you want it for buying a house (only valid for first house purchase). Only downside is that if you don't use it for that then you cant access it until 60 without losing the entire bonus. If you are actually thinking of using it for additional retirement savings then a S&S LISA would be much better and I think some folks have had trouble moving a Cash LISA to a S&S LISA so something to be aware of.

Albermarle

I think some folks have had trouble moving a Cash LISA to a S&S LISA so something to be aware of.

This issue is only when you are over 40 I think.

Nurse2047

Yes after 40 I was only able to transfer a cash LISA with Moneybox to one s&s lisa provider whom is EQI. 

Jazzo111

Really good feedback by everyone on this forum blown away tbh I was going to use it for a house that’s why I was thinking of going with a cash isa. I hear a stick and share isa is risky to take funds out for house cause market may be down. I’m 31 and want to buy a house with my gf maybe next year  

masonic

Yes, a S&S LISA would not be appropriate for the length of time you are planning to hold it.

P1Fanatic

Jazzo111 said:

Really good feedback by everyone on this forum blown away tbh I was going to use it for a house that’s why I was thinking of going with a cash isa. I hear a stick and share isa is risky to take funds out for house cause market may be down. I’m 31 and want to buy a house with my gf maybe next year  

Yep then you definitely want a Cash LISA. If you have the money available you could both open your own LISA to get double the bonus now and next tax year (and even 2023 depending on when next year you would be buying). Then use them both for buying the house (presuming its her first house purchase as well). And just a note that the max house price you can use it for is £450k.

xylophone

I hear a stick and share isa is risky ....

Might get beaten.....?