Lifetime ISA Money in account Question

Ed-1 wrote: »

The LISA runs on a tax year basis rather than 12 months from account opening. There is a special rule in 2017/18 as the bonus is not paid until the end of the tax year that if you want to withdraw you can do so penalty free but you must close the LISA.

From 6th April 2018 you can put in another £4,000 each in the 2018/19 tax year and the 25% charge then kicks in for withdrawals for a non-qualifying event as the bonus is added monthly based on what you contributed the month before.

EXAMPLE
8th June 2017: Open LISA with £1.
5th April 2018: Put £3,999 in LISA.
6th April 2018: Put £4,000 in LISA.
May 2018: Bonus of £2,000 paid for 2017/18 contributions and 2018/19 contributions in the previous month.
8th June 2018: You can now withdraw penalty free for first-time house purchase as you've held the account for 12 months.

Ed or anyone else, is the above in bold 100% correct? I've just spoken to one of the most renowned investment companies in the country and they say for the £4000 payment made on 6th April 2018 you would have to wait until the following Financial Year, i.e. 6th April 2019 for the £1000 bonus.

I'm not saying who's right or wrong, all i know is the whole HISA/LISA thing is as clear as mud, with conflicting views all over the place.

Help someone...please HELP!

eskbanker wrote: »

See this post in the main LISA thread - the company you spoke to is WRONG! Bonuses are only paid annually for the 2017/18 year, and from then on they're monthly.

The official version is section 9B.24 of https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/603261/ISA_Lifetime_ISA.pdf

That's making me feel better! Although they were adamant.

So Ed is right then - if my daughter opens a LISA today and pays in £4k and then £4K on 6th April 2018 and buys a house July 2018 she will get a £2K bonus? Still seems too good to be true though tbh!

Can i throw this in as well please - she previously opened a Help to Buy ISA on day 1, so she's going to transfer it into a LISA. Everyone so far has said she will still get the bonus for that as well up to 5th April 2017, approx £1100. Firstly, how would that work coz the bonus isnt in the Help to Buy ISA and the account will be closed and secondly, i've just received this, i wont say from who, but from HIGH up:

"If funds are transferred from a Help to Buy ISA to a Lifetime ISA, they will not receive a bonus under the Help to Buy scheme."

So i'm totally bamboozled!

Any further help would be really appreciated.

Cheers mate.

eskbanker wrote: »

No contradiction: where funds are transferred from HTB to LISA they'll qualify for the 25% bonus paid on all LISA contributions, so it's true to say that they won't receive a bonus under the HTB scheme as they'll get the equivalent bonus from the LISA scheme instead.

Yeah i'm with it now. Kind of superfluous/obvious in what they've said...but i get it! I was reading it as my daughter wouldnt get it at all!!!

Cheers mate.