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LISA - 25% bonus question

Cantisque
Posts: 34 Forumite

Hello,
My understanding is that if I were to open a Lifetime ISA with £4000, I would get the £1000 bonus added on that month.
If I wanted to get another £1000 the next year, would I need to put in another £4000? From the way it's worded, it sounds like the bonus is paid only on new money you put into the account, not in the same way interest would work. Is that right?
And does the year reset by the account open date or tax year date? (or some other date?)
Thanks!
My understanding is that if I were to open a Lifetime ISA with £4000, I would get the £1000 bonus added on that month.
If I wanted to get another £1000 the next year, would I need to put in another £4000? From the way it's worded, it sounds like the bonus is paid only on new money you put into the account, not in the same way interest would work. Is that right?
And does the year reset by the account open date or tax year date? (or some other date?)
Thanks!
0
Comments
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Yes you’d have to put in another £4,000 to get another £1,000 bonus - but you should be also getting interest on top of this, which you’ll get every year whether or not you add more money. The year works with tax years, just like other sorts of ISAs.1
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From the way it's worded, it sounds like the bonus is paid only on new money you put into the accountIt is per contribution.
Lifetime ISA - GOV.UK (www.gov.uk)
And, as you have worded it, it is only on new money paid into the lifetime ISA.not in the same way interest would work. Is that right?Interest is not a contribution. Interest has never left the wrapper. So, it doesn't need to be put back in.And does the year reset by the account open date or tax year date? (or some other date?)Tax year basis.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.1 -
Thanks for clarifying! 👍0
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