Lifetime ISA

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LauraJ88
LauraJ88 Posts: 5 Forumite
in ISAs & tax-free savings
I have just opened a Lifetime ISA. Unsure yet as to whether I will buy in less than 12 months or not so for now just opening with a very small initial deposit so not to lose the 25% fee on a large sum should I be in the position to move within 12 months.

I have large funds available for a house deposit that I can transfer to my Lisa. But wanting to know is the £4K max allowance per 12 months year or per tax year so for example if I was to put £4K in my Lisa before the end of this tax year in April could I then but another £4K after April 5/6th as this will be the next tax year allowance or do I have to wait 12 months from the date of the first £4K payment? Trying to think how I can maximise my bonus in a shorter period of time as other than seeing how a new job pans out I am in a position to move. Just not wanting to wait 2 years before being able to add money and wait for the bonus. I do have more than £8k to put in so will be frustrating if I have to wait every 12 months rather than per tax year to make my deposits.

Please help- I have a help to buy isa. But can wait a little longer if I need to before moving as the LISA offers a much more lucrative top up from the government with the larger allowance.

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  • eskbanker
    eskbanker Posts: 31,034 Forumite
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    The £4K allowance is per tax year, so you can pay in up to £4K by 5 April 2019 and then another £4K from 6 April onwards.
  • LauraJ88
    LauraJ88 Posts: 5 Forumite
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    Guessing even if I did it the way I’ve suggested by depositing now and then after April 2019 I’d still have to wait until the end of the 19/20 tax year to get the 25% bonus anyway?
  • LauraJ88
    LauraJ88 Posts: 5 Forumite
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    But assuming that would give me the 8k higher amount sitting in for the 25% top up however it’s only paid at the end of the tax year is that right? So I would still have to wait til April 2020 to get the extra £2k from government?
  • eskbanker
    eskbanker Posts: 31,034 Forumite
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    LauraJ88 wrote: »
    Guessing even if I did it the way I’ve suggested by depositing now and then after April 2019 I’d still have to wait until the end of the 19/20 tax year to get the 25% bonus anyway?
    LauraJ88 wrote: »
    But assuming that would give me the 8k higher amount sitting in for the 25% top up however it’s only paid at the end of the tax year is that right? So I would still have to wait til April 2020 to get the extra £2k from government?
    No, the 25% bonus payments are made within 4-8 weeks of money being deposited - they were initially deferred to the end of the tax year as a one-off in the year the scheme was launched, but since April 2018 they've been paid out monthly and this will continue....
  • LauraJ88
    LauraJ88 Posts: 5 Forumite
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    Thank you. Really helpful.
  • LauraJ88
    LauraJ88 Posts: 5 Forumite
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    Sorry final question- at exchanging contracts and using the sum of the Lisa. Am I able to top up the Lisa amount with other savings or does the deposit have to come solely from the Lisa?
  • Alexland
    Alexland Posts: 9,653 Forumite
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    You can give your solicitor other money to reduce the size of the required mortgage.
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