Lifetime ISAs guide
Comments
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I'd assume that the letter from the HTB provider was a generic one issued for any closure rather than specifically transfer to LISA - I take it you did use the LISA provider's transfer process?I did however receive a letter from my HTB provider, when the account was closed, saying I need to appoint a conveyancer to apply for the government bonus within 12 months. Can I ignore this and assume my LISA provider will sort the bonus?
Assuming you did, then once within the LISA environment the pre-2017/18 tax year HTB money is treated the same as any other contribution (except for being allowed to exceed the annual allowance) and so the bonus will be paid by the LISA manager automatically at the start of the new tax year, regardless of when you'd be looking to make your property purchase (or even if you use it for other purposes).
Pretty poor of your HTB provider to give misleading advice like that though - who was it?0 -
I'd assume that the letter from the HTB provider was a generic one issued for any closure rather than specifically transfer to LISA - I take it you did use the LISA provider's transfer process?
Assuming you did, then once within the LISA environment the pre-2017/18 tax year HTB money is treated the same as any other contribution (except for being allowed to exceed the annual allowance) and so the bonus will be paid by the LISA manager automatically at the start of the new tax year, regardless of when you'd be looking to make your property purchase (or even if you use it for other purposes).
Pretty poor of your HTB provider to give misleading advice like that though - who was it?
That's what I assumed as well, but thought I would ask anyway. I did use the lifetime ISA transfer process.
Just so you have some further information...
(I have not included any interest occurred to keep it simple and because it does not affect the bonus)
I opened my Halifax HTB in Dec 2015 and paid in the maximum, up until June 2017 (amounting to £4,800). In April 2017 I opened a Lifetime ISA with Hargreaves Lansdown with £4,000) At the start of this month I transfers my HTB to my Lifetime ISA using the transfer process.
Hargreaves Lansdown put £4,200 into my Lifetime ISA and £600 into another account, as that was the amount I had paid in this financial year. This leaves me £8,200 in my Lifetime ISA.
However after I had transferred the HTB to LISA I received this letter from Halifax
"Help to Buy: ISA Closure Summary Document
This letter confirms the closure of your Help to Buy: ISA on 4th July 2017
If you'd like to claim your government bonus:
Appoint a conveyancer to apply for, an receive payment of, the government bonus on your behalf. It's important that your conveyancer is one of the eligible conveyancers for the Help to Buy: ISA scheme. Your eligible conveyancer will need to see this document and we recommend you keep a copy for your own record
The scheme administrator must receive the claim from your conveyancer with 12 months of the account closing date shown in this letter
[It then states my account details including final balance]"
The more concerning aspect of this, from my opinion, is within Hargreaves Lansdown online banking portal. Within the 'bonuses' tab of the Lifetime ISA menu it says "Bonuses due from HMRC: £1000"... even though I have £8200 in the LISA. I would expect to see £2050.
Your thoughts would be valued please. I aim to call HL tomorrow to get some clarity.0 -
That's what I assumed as well, but thought I would ask anyway. I did use the lifetime ISA transfer process.
Just so you have some further information...
(I have not included any interest occurred to keep it simple and because it does not affect the bonus)
I opened my Halifax HTB in Dec 2015 and paid in the maximum, up until June 2017 (amounting to £4,800). In April 2017 I opened a Lifetime ISA with Hargreaves Lansdown with £4,000) At the start of this month I transfers my HTB to my Lifetime ISA using the transfer process.
Hargreaves Lansdown put £4,200 into my Lifetime ISA and £600 into another account, as that was the amount I had paid in this financial year. This leaves me £8,200 in my Lifetime ISA.
However after I had transferred the HTB to LISA I received this letter from Halifax
"Help to Buy: ISA Closure Summary Document
This letter confirms the closure of your Help to Buy: ISA on 4th July 2017
If you'd like to claim your government bonus:
Appoint a conveyancer to apply for, an receive payment of, the government bonus on your behalf. It's important that your conveyancer is one of the eligible conveyancers for the Help to Buy: ISA scheme. Your eligible conveyancer will need to see this document and we recommend you keep a copy for your own record
The scheme administrator must receive the claim from your conveyancer with 12 months of the account closing date shown in this letter
[It then states my account details including final balance]"
The more concerning aspect of this, from my opinion, is within Hargreaves Lansdown online banking portal. Within the 'bonuses' tab of the Lifetime ISA menu it says "Bonuses due from HMRC: £1000"... even though I have £8200 in the LISA. I would expect to see £2050.
Your thoughts would be valued please. I aim to call HL tomorrow to get some clarity.
Did you make April's deposit of £200 into the H2B ISA before or after 6th April 2017? The fact they've only allowed £4,200 more into the LISA suggests after? They should've also allowed interest accrued/paid up to 5th April 2017 into the LISA.
As for the HL bonus balance due, it's obviously showing as wrong at the moment.0 -
Pretty poor of your HTB provider to give misleading advice like that though - who was it?
Halifax may also be responsible for under-reporting the amount HL could put into the Lifetime ISA as interest up to 5th April 2017 is allowed on top of the £4,200 subscriptions to the H2B ISA.0 -
Did you make April's deposit of £200 into the H2B ISA before or after 6th April 2017? The fact they've only allowed £4,200 more into the LISA suggests after? They should've also allowed interest accrued/paid up to 5th April 2017 into the LISA.
As for the HL bonus balance due, it's obviously showing as wrong at the moment.
I made April's £200 deposit after 6th April. I did also receive the interest you mentioned, however I have not added it to the calculations as I didn't want to complicate it.“
(I have not included any interest occurred to keep it simple and because it does not affect the bonus)
Do you think HL will correct the fault if I leave them to it? Or should I phone them, to make them aware?0 -
I made April's £200 deposit after 6th April. I did also receive the interest you mentioned, however I have not added it to the calculations as I didn't want to complicate it.
Do you think HL will correct the fault if I leave them to it? Or should I phone them, to make them aware?
That's reassuring then. It would be interesting to know whether they also allowed interest that had been accrued up to 5th April 2017 but not yet paid into the H2B ISA into the LISA? Did they only allow interest that had already been paid into the H2B ISA into the LISA do you know?
You could ring HL to ask them about what's showing if you wanted but I'm sure the bonuses would be correctly paid in the end.0 -
So for exact figures, the HTB closed with £4,967.67...
£4,367.67 got transferred into my LISA
£ 600.00 got transferred into another account
So in answer to your question, all interest accrued in my HTB (Even after 5th April) was transferred over to my LISA.
I0 -
So for exact figures, the HTB closed with £4,967.67...
£4,367.67 got transferred into my LISA
£ 600.00 got transferred into another account
So in answer to your question, all interest accrued in my HTB (Even after 5th April) was transferred over to my LISA.
I
Interesting breach of the regulations from Halifax then...;)0 -
I would assume it is HL that is at fault, as it was their decision to put £600 into my 'loyalty bonus' account (other account).
- I have just looked back at this and there is actually £595 in that 'loyalty bonus' account. Someone is having a tinker. (The LISA account value has not changed)0 -
I would assume it is HL that is at fault, as it was their decision to put £600 into my 'loyalty bonus' account (other account).
- I have just looked back at this and there is actually £595 in that 'loyalty bonus' account. Someone is having a tinker. (The LISA account value has not changed)
Halifax will have provided the eligible amount to be put into the LISA without contributing to the LISA limit to HL.
As for the other HL account's value changing - is it invested?0
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