Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • MSE Helen Saxon
    • By MSE Helen Saxon 16th Mar 16, 5:06 PM
    • 75Posts
    • 44Thanks
    MSE Helen Saxon
    Lifetime ISAs guide
    • #1
    • 16th Mar 16, 5:06 PM
    Lifetime ISAs guide 16th Mar 16 at 5:06 PM
    Hi!

    This is the discussion thread for the



    Click reply below to discuss. If you haven't already, join the forum to reply.


    Thanks folks,
    Last edited by MSE Andrea; 14-05-2018 at 1:33 PM.
Page 74
    • Alexland
    • By Alexland 9th Mar 18, 5:30 PM
    • 2,553 Posts
    • 1,931 Thanks
    Alexland
    I had a meeting with the bank of scotland today to degrade my account and stop wasting £15 a month for beneifts i never use! I mentioned the LISA account to them and to my suprise I was advised that as I am funding a LISA with Skipton I am unable to fund my ISA with the bank of scotland? I cant even split the £20k?
    Originally posted by donnadrake
    Whoever you spoke to was misinformed, you are allowed to contribute up to £20k total per year across the 4 types of adult ISA (observing the special contribution limits that apply to HTB and LISA).

    1) Cash ISA (inc HTB ISA)
    2) S&S ISA
    3) Lifetime ISA (cash or s&s)
    4) IF ISA

    So adding £4k to the LISA and £16k into one of the other 3 types of ISA would be fine.

    Maybe they thought a LISA in cash was a type of Cash ISA such as a HTB ISA.

    Still if they don't sell the LISA you can't blame them for not being trained on it.

    Alex.
    Last edited by Alexland; 09-03-2018 at 5:39 PM.
    • deutsch
    • By deutsch 10th Mar 18, 12:13 AM
    • 329 Posts
    • 46 Thanks
    deutsch
    Going from Halifax HTB to AJ Bell LISA.
    Forms sent 27th Feb in post.
    Acknowledgement received from AJ Bell 1st March.
    Hopefully AJ Bell can make contact with Halifax and there are no delays. I would be gutted if I don't get the extra £1000+ from the government for 2016/17's HTB transfer in LISA.
    Anyone actually done a transfer from HTB to a LISA and confirm how long it takes?
    • GM1880
    • By GM1880 12th Mar 18, 10:07 AM
    • 151 Posts
    • 57 Thanks
    GM1880
    Given a little additional interest paid on what I had in my HTB ISA before I transferred to Skipton which meant the additional transfer I made to take it up to £4000 has taken the total to about £4010. Will this cause issues given i!!!8217;m Over the maximum limit? Should I just transfer the surplus back out?
    • eddiejones
    • By eddiejones 12th Mar 18, 11:37 AM
    • 68 Posts
    • 6 Thanks
    eddiejones
    Given a little additional interest paid on what I had in my HTB ISA before I transferred to Skipton which meant the additional transfer I made to take it up to £4000 has taken the total to about £4010. Will this cause issues given i!!!8217;m Over the maximum limit? Should I just transfer the surplus back out?
    Originally posted by GM1880
    Skipton are very good at replying to 'Secure message's online, or helping over the phone. So you could ask them if you have gone over the limit. Tbh, they don't seem to be taking interest into account in quite a lot of cases (maybe correctly, maybe incorrectly I don't know)

    Nevertheless, I asked a similar question myself and got the following answer

    "If you end up over-subscribing to your Lifetime ISA account you will be reimbursed the amount you have over subscribed by"
    • credit_crunch
    • By credit_crunch 12th Mar 18, 11:59 AM
    • 1,398 Posts
    • 2,897 Thanks
    credit_crunch
    Hi all
    Apologies if its been asked before but I'm struggling to find clarification.

    I owned a property previously but it was repossessed when I went bankrupt in 2015.

    Are there any benefits to getting a help to buy ISA or LISA is there a better alternative?

    I would hope to be in a position to buy a property in 3-5 years time.

    Thanks in advance
    • Alexland
    • By Alexland 12th Mar 18, 12:33 PM
    • 2,553 Posts
    • 1,931 Thanks
    Alexland
    If you have previously owned property you are not allowed to open an HTB ISA or use a LISA in a property purchase. You can however use a LISA as part of your retirement planning.
    • credit_crunch
    • By credit_crunch 12th Mar 18, 2:37 PM
    • 1,398 Posts
    • 2,897 Thanks
    credit_crunch
    If you have previously owned property you are not allowed to open an HTB ISA or use a LISA in a property purchase. You can however use a LISA as part of your retirement planning.
    Originally posted by Alexland
    Thanks for clarifying, that's what I thought.
    • candiceweymouth
    • By candiceweymouth 13th Mar 18, 8:45 AM
    • 2 Posts
    • 0 Thanks
    candiceweymouth
    LISA Accounts
    What the most recommended LISA Account to open?
    • eskbanker
    • By eskbanker 13th Mar 18, 8:56 AM
    • 7,420 Posts
    • 7,989 Thanks
    eskbanker
    What the most recommended LISA Account to open?
    Originally posted by candiceweymouth
    That's a bit of a 'how long is a piece of string' question but you could do a lot worse than reading the MSE LISA article and in particular its summary of the market at https://www.moneysavingexpert.com/savings/lifetime-ISAs#bestbuys.

    However, if you plan to buy a first property within the next few years, chances are you'll be better staying in cash rather than stocks & shares investment, so that effectively narrows the field down to a choice of one, namely the Skipton Building Society....
    • candiceweymouth
    • By candiceweymouth 13th Mar 18, 9:18 AM
    • 2 Posts
    • 0 Thanks
    candiceweymouth
    Ok thank you. I have read so many articles, but because many of the mainstream banks don't offer lifetime isa's yet I'm unsure on what other society to open with.

    Have seen the threads on Skipton in here so maybe I will open with them

    Thanks
    • dfbefore30
    • By dfbefore30 14th Mar 18, 12:30 PM
    • 34 Posts
    • 104 Thanks
    dfbefore30
    I'm a bit confused about my Lifetime Isa.

    In June, I opened a LISA with Skipton. I then transferred in my help to buy Isa and about 2500 from a previous Isa. I assumed the money from my second isa would count towards my 4000 for the bonus.

    I recently rang Skipton to check how much more I could put in before the end of the tax year (I thought I'd maxed it out but just wanted to check). I was told I could put in another 2500 and that the money from my previous isa didn't count. I've now topped it up with an additional 2500.

    Can anyone confirm whether the bonus will be paid for the 4000 only, plus my previous htb balance, or whether I will also get a bonus for the previous isa balance?
    • eskbanker
    • By eskbanker 14th Mar 18, 12:45 PM
    • 7,420 Posts
    • 7,989 Thanks
    eskbanker
    I'm a bit confused about my Lifetime Isa.

    In June, I opened a LISA with Skipton. I then transferred in my help to buy Isa and about 2500 from a previous Isa. I assumed the money from my second isa would count towards my 4000 for the bonus.

    I recently rang Skipton to check how much more I could put in before the end of the tax year (I thought I'd maxed it out but just wanted to check). I was told I could put in another 2500 and that the money from my previous isa didn't count. I've now topped it up with an additional 2500.

    Can anyone confirm whether the bonus will be paid for the 4000 only, plus my previous htb balance, or whether I will also get a bonus for the previous isa balance?
    Originally posted by dfbefore30
    You should get the 25% bonus on anything added to the LISA, so if it's accepted into the account then you should get the bonus on it.

    However, that £2500 clearly shouldn't have been accepted into the LISA under the scheme rules so at some point (maybe when Skipton do the year-end reporting to HMRC) it's likely to be reversed out, and if/when that happens I'd have thought you'd have every right to complain to Skipton that you acted in good faith on information they provided and what are they prepared to do about it....
    • abb16ott
    • By abb16ott 14th Mar 18, 1:25 PM
    • 25 Posts
    • 1 Thanks
    abb16ott
    Brothere and sister
    As Brother and Sister can they put into two LISA's and use this in the future to buy a 1st home together (50/50 mortgage)

    Many Thanks
    • Lungboy
    • By Lungboy 14th Mar 18, 1:40 PM
    • 1,405 Posts
    • 1,346 Thanks
    Lungboy
    With regards to the penalty for early withdrawal: as long as the investments in the LISA grow at more than 6.25% after fees, there's no actual loss of initial capital is there?
    • eskbanker
    • By eskbanker 14th Mar 18, 1:43 PM
    • 7,420 Posts
    • 7,989 Thanks
    eskbanker
    As Brother and Sister can they put into two LISA's and use this in the future to buy a 1st home together (50/50 mortgage)
    Originally posted by abb16ott
    Yes, as long as they each meet the various scheme criteria, e.g. aged under 40 when opening the LISAs, buying more than a year later, property no more than £450K, etc....
    • JackM93
    • By JackM93 14th Mar 18, 2:18 PM
    • 1 Posts
    • 0 Thanks
    JackM93
    I have LISA (opened in April 2017) which I would like to use towards a deposit for my first house purchase.

    1). Who begins the process of using the funds in my LISA towards a mortgage deposit? I spoke with my solicitor and she has said it is not her place to use ISA monies.

    2). Can the monies in the LISA actually be used as a mortgage deposit? It has been suggested that the monies in the LISA will only be received on completion of the purchase (i.e. only once I have put down the deposit) and then the monies will be "re-funded" at a later date.

    Thanks for assistance in advance
    • Alexland
    • By Alexland 14th Mar 18, 9:38 PM
    • 2,553 Posts
    • 1,931 Thanks
    Alexland
    With regards to the penalty for early withdrawal: as long as the investments in the LISA grow at more than 6.25% after fees, there's no actual loss of initial capital is there?
    Originally posted by Lungboy
    Yes if your stocks & shares LISA grows sufficiently this could offset the penalty for early withdrawal. It's still a penalty as you would have done better with the same investments a S&S ISA.
    • Alexland
    • By Alexland 14th Mar 18, 9:42 PM
    • 2,553 Posts
    • 1,931 Thanks
    Alexland
    1). Who begins the process of using the funds in my LISA towards a mortgage deposit? I spoke with my solicitor and she has said it is not her place to use ISA monies.
    Originally posted by JackM93
    The registered solicitor would need to request withdrawal of the money from the LISA provider. If your solicitor doesn't understand this it suggests they might not be registered to use LISAs. Still nobody would do this yet as the accounts are not 12 months old yet and the first bonus hasn't paid.

    2). Can the monies in the LISA actually be used as a mortgage deposit? It has been suggested that the monies in the LISA will only be received on completion of the purchase (i.e. only once I have put down the deposit) and then the monies will be "re-funded" at a later date.
    Originally posted by JackM93
    Yes the LISA can be used as a mortgage deposit. The solicitor would draw the funds when required.

    Alex.
    • Chris4
    • By Chris4 15th Mar 18, 5:01 PM
    • 127 Posts
    • 46 Thanks
    Chris4
    I suggest you read the below important information if you are moving abroad temporarily. Also be aware the other country may not recognise your ISA as free from their tax rules...

    https://www.gov.uk/individual-savings-accounts/if-you-move-abroad-or-die
    Originally posted by Alexland
    Thanks for that info. I'm going to Australia on a Working Holiday visa. It looks like the definition of a "UK resident" (and can therefore pay into an ISA) is someone who spends 6 out of 12 months in the UK. So potentially I wouldn't stop being a UK resident until I hit the 6 month mark? Because I could be there for less than 6 months (I don't know how long I'll be there yet) and therefore always remain a UK resident. But either way, as long as I don't pay in to the LISA after the 6 month mark, only before that or after returning, it should be all good?
    • Alexland
    • By Alexland 15th Mar 18, 5:07 PM
    • 2,553 Posts
    • 1,931 Thanks
    Alexland
    Thanks for that info. I'm going to Australia on a Working Holiday visa. It looks like the definition of a "UK resident" (and can therefore pay into an ISA) is someone who spends 6 out of 12 months in the UK. So potentially I wouldn't stop being a UK resident until I hit the 6 month mark? Because I could be there for less than 6 months (I don't know how long I'll be there yet) and therefore always remain a UK resident. But either way, as long as I don't pay in to the LISA after the 6 month mark, only before that or after returning, it should be all good?
    Originally posted by Chris4
    It depends how your time away falls across tax years.

    https://www.gov.uk/tax-foreign-income/residence

    Whether you’re UK resident usually depends on how many days you spend in the UK in the tax year (6 April to 5 April the following year). You’re automatically resident if either:
    • you spent 183 or more days in the UK in the tax year
    • your only home was in the UK - you must have owned, rented or lived in it for at least 91 days in total - and you spent at least 30 days there in the tax year
    You’re automatically non-resident if either:
    • you spent fewer than 16 days in the UK (or 46 days if you haven’t been classed as UK resident for the 3 previous tax years)
    • you work abroad full-time (averaging at least 35 hours a week) and spent fewer than 91 days in the UK, of which no more than 30 were spent working
    Alex.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,837Posts Today

8,390Users online

Martin's Twitter
  • Nearly at the Cheshire Show. Doing an @itvMLshow there today and tomorrow. Do say hi if you're there or ask a question.

  • Good morning. I'm on the train to go to the Cheshire Show today to film for an @itvmlshow Roadshow. Looking forwa? https://t.co/T0uKOKyj4I

  • Early days, but so far a huge majority - 19 in 20 people - support legalising cannabis for medical use. Whereas t? https://t.co/a3gJipQITc

  • Follow Martin