We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Lifetime ISA and IPA
lozbrien
Posts: 11 Forumite
Hi all,
I have been discharged as of the start of this month and had a letter of confirmation to this effect.
I am trying to rebuild my life like everybody else that has been in this awful scenario, and as a fairly young person I still aspire that I will one day be able to own my own house.
My parents have generously offered to give me a bit of a head start if I am allowed, and if I can set up a lifetime ISA pay some money into it.
Obviously I don't want to do that if it means I am breaking the rules or risk having that money taken away.
So my question is, can I do this, and if I do, do I need to declare it?
I have been discharged as of the start of this month and had a letter of confirmation to this effect.
I am trying to rebuild my life like everybody else that has been in this awful scenario, and as a fairly young person I still aspire that I will one day be able to own my own house.
My parents have generously offered to give me a bit of a head start if I am allowed, and if I can set up a lifetime ISA pay some money into it.
Obviously I don't want to do that if it means I am breaking the rules or risk having that money taken away.
So my question is, can I do this, and if I do, do I need to declare it?
0
Comments
-
Hi lozbrien,
***EDITED***
You will need to check the terms and conditions of any specific ISA carefully, to see if a third party can pay money in on your behalf and still receive any bonus. But having an ISA in itself, where a third party is paying the money, post discharge, shouldn't be a problem, from a bankruptcy perspective, even with an IPA - see post below.
Laura
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
Hi Laura,
Thank you for your reply.
I do currently have an IPA, so I will be sure to check this out with the official receive for clarity.0 -
From my understanding, after discharge, cash gifts are yours to keep. This is irrespective of having an IPA or not. AKA, if you got an inheritance, after discharge but still within your IPA, you could keep it all.0
-
Hello again,
Having checked the technical manual more closely, I would like to amend what I said before and thank Jono987 for prompting me to do so.
As you have been discharged, the lump sum from your parents should not be taken through an increase in your IPA as it shouldn't be considered income. There are some exceptions to this, where by if you receive a bonus from your employer or potentially a lump sum from a pension, where an IPA can be amended to include the lump sum; but the money from your parents shouldn't fall into this category. I would like to apologise for any confusion I have caused.
I would mention that you may still find it difficult to add to the ISA through savings whilst an IPA is in place, but other than that, it shouldn't be a problem.
Laura
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.7K Banking & Borrowing
- 254.2K Reduce Debt & Boost Income
- 455.1K Spending & Discounts
- 246.8K Work, Benefits & Business
- 603.3K Mortgages, Homes & Bills
- 178.2K Life & Family
- 260.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards