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LISA bonuses
Bungalore
Posts: 2 Newbie
Morning!
This has probably been answered but I just want to be absolutely clear:
If I open a LISA (and receive bonus each month) and use it for my first house buy - can I open another LISA afterwards to save for retirement and continue to receieve bonus?
I've been saving in a H2B ISA for a few years but have recently started contemplating spending over 250k on my first house so am scrambling to mitigate the loss of H2B bonus.
Thanks!
This has probably been answered but I just want to be absolutely clear:
If I open a LISA (and receive bonus each month) and use it for my first house buy - can I open another LISA afterwards to save for retirement and continue to receieve bonus?
I've been saving in a H2B ISA for a few years but have recently started contemplating spending over 250k on my first house so am scrambling to mitigate the loss of H2B bonus.
Thanks!
0
Comments
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You can continue to pay into the same LISA even after you've made a withdrawal.0
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You can either close it when buying a house and then open another one after (thought if it's the same tax year, if you'd already deposited the maximum balance you can't add anymore until the next tax year) or just ask for £1 to be left it in, and then the next tax year you can add up to the balance again, as long as £1 is added each tax year it will stay open.0
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20SmthngSver wrote: »You can either close it when buying a house and then open another one after (thought if it's the same tax year, if you'd already deposited the maximum balance you can't add anymore until the next tax year)
My understanding is that you are still only allowed to contribute to one LISA per tax year so if you have made any contribution and the account gets closed by a withdrawal of the full balance then you will not be eligible to contribute again into a new LISA (assuming you are still under 40 to open the account) until the next tax year.
If switching from property saving to retirement investing it is likely that you would want to change from a Cash to S&S provider via either LISA transfer (if there is a balance and the account remained open) or just open a new S&S LISA next tax year if still under 40.
Alex0 -
My understanding is that you are still only allowed to contribute to one LISA per tax year so if you have made any contribution and the account gets closed by a withdrawal of the full balance then you will not be eligible to contribute again into a new LISA (assuming you are still under 40 to open the account) until the next tax year.
If switching from property saving to retirement investing it is likely that you would want to change from a Cash to S&S provider via either LISA transfer (if there is a balance and the account remained open) or just open a new S&S LISA next tax year if still under 40.
Alex
Yes. That's what I said. If you've contributed and then used it for buying a house, you can only put in the difference of what you've not put in (if you've put the max in, then you've used your allowance for that year). If you close it, you can open another the next tax year.0 -
Thanks for the clarification!0
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