MSE News: Martin Lewis: Is a Lifetime ISA win coming in the Budget?

NewPieman

So the question is...........I have a 20 year old and 18 year old. The elder is finishing Uni this year, and hopefully going into the Education sector. The 18 year old is at college and will be next (academic) year.....

They have some funds from an inheritance, and I'm suggesting that they both put £4k into LISA this tax year and next tax year......we will also be doing an ISA for the older one as she'll be working "properly" next (tax) year as she would probably be over PSA next (tax) year.......the younger one we will be able to use the 18k income rules (I believe)....

I doubt either will be buying in London when the time comes but I see it is a benefit to have the LISA at the moment.......thoughts?

zagfles

NewPieman said:

So the question is...........I have a 20 year old and 18 year old. The elder is finishing Uni this year, and hopefully going into the Education sector. The 18 year old is at college and will be next (academic) year.....

They have some funds from an inheritance, and I'm suggesting that they both put £4k into LISA this tax year and next tax year......we will also be doing an ISA for the older one as she'll be working "properly" next (tax) year as she would probably be over PSA next (tax) year.......the younger one we will be able to use the 18k income rules (I believe)....

I doubt either will be buying in London when the time comes but I see it is a benefit to have the LISA at the moment.......thoughts?

Who knows, that's the problem with these daft govt schemes. At that age our kids saved in Help to Buy ISAs which we thought would be fine with a purchase limit of £250k, but in recent couple of years didn't look realistic so they had to move them to LISAs for the higher £450k limit, but you can only do that £4k a year. So they lost the potential bonus on the HTB ISA but got a small one on the limited amount they could put into a LISA. 

In a few years there might be another scheme with a limit of £650k. Who knows with stupid govt policies which are supposed to "help" but all they do is push prices up and complicate matters. 

MSE_Helen_K

Hi everyone – thank you for your continued interest in this topic. Here's our latest update on it covering the Treasury Committee's enquiry... 

Read the full story:
'Martin Lewis to MPs: Time to end the risk of a Lifetime ISA fine for those buying a first home

If you haven’t already, join the forum to reply.

mathmog

What’s the latest on this review? I listened to the evidence from ML at others at the hearing and then saw that Dame Meg had written some letters asking for some further data. The trail seems to have gone cold. Any wind of what if anything is going to happen? 

Something that did not appear to have been discussed is the impact of the rules on part buy part rent purchases as the dumb LISA cap seems to apply to the full market value and not to the share being bought. 

dunstonh

What’s the latest on this review? I listened to the evidence from ML at others at the hearing and then saw that Dame Meg had written some letters asking for some further data. The trail seems to have gone cold. Any wind of what if anything is going to happen? 

It will form part of the ISA review.

Rich2808

I accept they are due to cease in 2030 and there are probably very few people left with one but perhaps they ought to look at the help to buy isa too. Why is the property value threshold for that only £250k outside London - but the lifetime isa is £450k?

Just tidy it up and help the remaining few first time buyers use the scheme particularly in more expensive locations.

If changes in property values require changes to the lifetime isa why not the terms of the help to buy isa - which costs HMT much less as the maximum bonus is only £3k.

masonic

Rich2808 said:

If changes in property values require changes to the lifetime isa why not the terms of the help to buy isa - which costs HMT much less as the maximum bonus is only £250k.

Do you mean £3k?

Rich2808

masonic said:

Rich2808 said:

If changes in property values require changes to the lifetime isa why not the terms of the help to buy isa - which costs HMT much less as the maximum bonus is only £250k.

Do you mean £3k?

Sorry yes - just got my bonuses and property caps mixed up. Amended now.

MSE_Helen_K

mathmog said:

What’s the latest on this review? I listened to the evidence from ML at others at the hearing and then saw that Dame Meg had written some letters asking for some further data. The trail seems to have gone cold. Any wind of what if anything is going to happen? 

Something that did not appear to have been discussed is the impact of the rules on part buy part rent purchases as the dumb LISA cap seems to apply to the full market value and not to the share being bought. 

The Treasury Committee review into LISAs is still ongoing and we're continuing to monitor it here at MSE. A publication date hasn't been announced. 

MSE_Helen_K

The Treasury Committee's Lifetime ISA (LISA) report has today been published. 

Read MSE's news story on the Treasury Committee's LISA report, including Martin's view on it. 

And read the full report on the Treasury Committee website.