Lifetime ISAs guide

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  • djc1234
    djc1234 Posts: 4 Newbie
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    Hi

    Apologies if this has already been answered.

    How does the bonus scheme work?

    If I put £4k into my LISA on the 1st April 2017 and another £4k on 1st May which are two different tax years. When can I 'claim' the £2k bonus? Do I have to wait until the
  • djc1234
    djc1234 Posts: 4 Newbie
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    ... end of that tax year e.g. April 19?
  • djc1234
    djc1234 Posts: 4 Newbie
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    Sorry that should have been 1st April 18 and 1st May 2018.
  • eskbanker
    eskbanker Posts: 31,034 Forumite
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    djc1234 wrote: »
    Apologies if this has already been answered.
    Yes, see post #723 above.... You don't claim anything yourself, your ISA manager does it for you as part of running the product.
  • djc1234
    djc1234 Posts: 4 Newbie
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    Sorry, for the sake of clarity. If I put £4k in my LISA on 1st April 2018 and £4k on 1st May 2018. My fund manager can claim for the period and therefore full £8k to 6th May 2018 (which will be the subsequent claim period)?
  • eskbanker
    eskbanker Posts: 31,034 Forumite
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    djc1234 wrote: »
    Sorry, for the sake of clarity. If I put £4k in my LISA on 1st April 2018 and £4k on 1st May 2018. My fund manager can claim for the period and therefore full £8k to 6th May 2018 (which will be the subsequent claim period)?
    Your ISA manager would claim £1K bonus between 6 and 19 April for the 1 April £4K deposit, and then claim another £1K bonus between 6 and 19 May for the 1 May £4K deposit.
  • Blades1071
    Blades1071 Posts: 2 Newbie
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    By March '18 I'll have £5,800 in my Help To Buy ISA. I'll transfer that into my LISA (opened today with £1) and add £1,799 to make the £4,000 allowance (£3,600 saved before 06/04/17 so only £2,200 towards the LISA allowance).

    I work out that would give me £1,900 bonus on £7,600 but won't be accessible until 14/06/18 (a year after opening LISA).

    So say I bought a house exactly one year from today - between April and June of 2018, could I deposit another £4,000 from my savings account as this would be into the 18/19 year? So I'd have £11,600.

    Basically, can you get the whole year's bonus even if you've only held it a couple months (into the second year)?
  • Ed-1
    Ed-1 Posts: 3,892 Forumite
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    Blades1071 wrote: »
    By March '18 I'll have £5,800 in my Help To Buy ISA. I'll transfer that into my LISA (opened today with £1) and add £1,799 to make the £4,000 allowance (£3,600 saved before 06/04/17 so only £2,200 towards the LISA allowance).

    I work out that would give me £1,900 bonus on £7,600 but won't be accessible until 14/06/18 (a year after opening LISA).

    So say I bought a house exactly one year from today - between April and June of 2018, could I deposit another £4,000 from my savings account as this would be into the 18/19 year? So I'd have £11,600.

    Basically, can you get the whole year's bonus even if you've only held it a couple months (into the second year)?

    Yes it's a bonus, not interest. Interest is calculated on how long you've held the money; the bonus is calculated on how much you put in.
  • Blades1071
    Blades1071 Posts: 2 Newbie
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    That's great for us - strange though that you could just deposit £4,000 one day and the next day it would be effectively worth £5,000
  • Ed-1
    Ed-1 Posts: 3,892 Forumite
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    Blades1071 wrote: »
    That's great for us - strange though that you could just deposit £4,000 one day and the next day it would be effectively worth £5,000

    I take it you don't have a pension? That's exactly how they work, except the 25% bonus (for basic rate and non-taxpayers) and 67% bonus (for higher rate taxpayers) is called 'tax relief'.
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