Property Asset and LISA

Ikan_Bilis

I'm already named on some property deeds - although I didn't buy the property and it's never been my home (it was gifted to me).

Will this mean I won't qualify for the 25% bonus from my LISA when I buy my first home?

Kim_13

Ikan_Bilis said:

I'm already named on some property deeds - although I didn't buy the property and it's never been my home (it was gifted to me).

Will this mean I won't qualify for the 25% bonus from my LISA when I buy my first home?

Correct. The expectation would be that you could live in that property or sell it to fund an ongoing purchase, and therefore don’t need to receive a bonus at taxpayers’ expense unless you are saving for retirement.

If you own the whole property, you are in a better position than those who own part of one - and therefore can’t live in or sell it without the permission of the other owner(s.)

If you need part of your LISA savings to fund a house purchase, there is a 6.25% penalty on your own contributions which is somewhat harsher - as people may have been contributing not expecting to inherit property, or for the purchase limit to increase in line with property prices.

Keep_pedalling

Even worse than that you will have to pay an additional 5% SDLT on that purchase. That assumes you are in England the additional tax in other parts of the UK are even higher.

This sounds like a gift that would better not to have had.

Keep_pedalling

How long have you been a part owner? If it’s not to long ago you could gift it back to avoid the extra tax, but if it was a good few years you might have a CGT liability instead.