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Lifetime ISAs
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David333
Posts: 742 Forumite


Before I turned 40, I opened a Lifetime ISA (LISA) with £1. I have £8000 in a savings account. At some point in the next five years, I want to buy a house. Am I right in thinking that I can only pay £4000 a year into a LISA and the bonus is added that month? So I pay in £4000 today and it'll become £5000 in the next few weeks? Then in the new tax year, I pay in my other £4000, with the result that I'll have £10,000 (plus a bit of interest) available to either buy a house or for retirement with no way to withdraw it without a penalty (although maybe interest helps to lessen the pain of the withdrawal penalty?). Even though the LISA has only had £1 in it for a couple of years, I can use it to buy a house whenever I want, since it's been open for more than a year?
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Comments
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You're correct - to add a bit of definition on the bonus timescales, there is a cutoff around the 5th each month, and HMRC will add the bonus corresponding to that cutoff toward the end of each month.
You can also only contribute until your 50th birthday.1 -
Great, thank you!0
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This all assumes you haven't previously owned a property?Personal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone1 -
cloud_dog said:This all assumes you haven't previously owned a property?0
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