Lifetime ISAs guide
Comments
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To complicate the already overly complex.
I already have >£4000 in my HTB. Does that mean I cannot transfer all of that into the LISA this year? And if so, will I get the bonus on all of it or not?
My intention is to keep putting £200pm into it and hopefully then switch to a LISA. The idea of opening with £1 is great... but HL have a £100 minimum deposit + £25 withdrawal fee!0 -
To complicate the already overly complex.
I already have >£4000 in my HTB. Does that mean I cannot transfer all of that into the LISA this year? And if so, will I get the bonus on all of it or not?
My intention is to keep putting £200pm into it and hopefully then switch to a LISA. The idea of opening with £1 is great... but HL have a £100 minimum deposit + £25 withdrawal fee!
So... I answered my own questions, but I thought I'd keep this up for others. This is from the HL website as an example:
Tom has a Help to Buy ISA which is valued at £3,000 on 5 April 2017. He transfers his Help to Buy ISA [they mean from HTB > LISA] on 6 April 2017 (2017/18 tax year) and qualifies for the 25% government bonus (£750). Tom can also contribute up to the Lifetime ISA allowance (£4,000) for the 2017/18 tax year and receive the government bonus for this too, resulting in up to £8,750 being paid into his Lifetime ISA in respect of the 2017/18 tax year.
- So I have £4000 in my HTB which will be about £5200 by the end of this financial year.
- I can open a LISA now with £100 with HL.
- Before the financial year is out I transfer my HTB into my LISA
- I then complete my LISA allowance of another £3900 - totalling £4000.
This brings my total LISA amount for the first year to £9200, all of which gets a 25% bonus. This is approximately the most anyone could possibly have, to use on a house, with the HTB and LISA combined.
Please do correct me if I am wrong!!!!0 -
So... I answered my own questions, but I thought I'd keep this up for others. This is from the HL website as an example:
Tom has a Help to Buy ISA which is valued at £3,000 on 5 April 2017. He transfers his Help to Buy ISA [they mean from HTB > LISA] on 6 April 2017 (2017/18 tax year) and qualifies for the 25% government bonus (£750). Tom can also contribute up to the Lifetime ISA allowance (£4,000) for the 2017/18 tax year and receive the government bonus for this too, resulting in up to £8,750 being paid into his Lifetime ISA in respect of the 2017/18 tax year.
- So I have £4000 in my HTB which will be about £5200 by the end of this financial year.
- I can open a LISA now with £100 with HL.
- Before the financial year is out I transfer my HTB into my LISA
- I then complete my LISA allowance of another £3900 - totalling £4000.
This brings my total LISA amount for the first year to £9200, all of which gets a 25% bonus. This is approximately the most anyone could possibly have, to use on a house, with the HTB and LISA combined.
Please do correct me if I am wrong!!!!
That's nearly right. I'm in much the same position as you, and here's what I've found out about transferring the HTB into my LISA:
- Any contributions made to your HTB prior to 6 April 2017 can be transferred over to your LISA and get the full 25% government bonus.
- Any contributions made to your HTB during tax year 2017/18 will count towards your £4000 LISA annual limit when you transfer.
So here's an edit to your suggestion:- So I have £4000 in my HTB which will be about £5200 by the end of this financial year.
- I can open a LISA now with £100 with HL.
- Before the financial year is out I transfer my HTB into my LISA
- I then top-up my LISA with another £2700 - totalling £2800.
- My £4000 LISA annual contribution limit is therefore reached with a combination of £1200 I put into my HTB (then transferred) and £2800 I put directly into my LISA.
Basically, for tax-year 2017/18, you can get the 25% bonus on either a HTB or a LISA, but not both.0 -
Mainly because I don't particularly want to 'lock' money into a S&S LISA that requires £x instalments as well as £y deposit ... Whereas a cash LISA can supposedly be opened with a quid ...0
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Metalligator wrote: »Am I not allowed to pay the full amount into HTB this year, (£2400) £4k into LISA, then transfer HTB next tax year?
My interest is paid in macrch so tight transfer window
Nope, 17/18 HTB contributions would reduce your allowance able to be contributed to a LISA ...
Though in the HTB they're not locked away with penalty conditions (and you can contribute to LISA 'late in the day' say March 2018 with the remaining allowable balance and also transfer your HTB for the pre-April 17 contributions 25% bonus still -- just ensure you have opened one with £1 to "get the 1year clock ticking") you may wanna check that 4% Santander rate as HTB's are generally variable and pretty sure they dropped their rate a while back ?0 -
Nope, 17/18 HTB contributions would reduce your allowance able to be contributed to a LISA ...
Though in the HTB they're not locked away with penalty conditions (and you can contribute to LISA 'late in the day' say March 2018 with the remaining allowable balance and also transfer your HTB for the pre-April 17 contributions 25% bonus still -- just ensure you have opened one with £1 to "get the 1year clock ticking") you may wanna check that 4% Santander rate as HTB's are generally variable and pretty sure they dropped their rate a while back ?
Santander still 4% for existing customers who got the first issues.0 -
My daughter & partner have been investing in H2B for the past year and are due to complete a house purchase in July '17.
The house is outside of London and over £250k so the H2B bonus will not apply as I understand.
Is there anyway to transfer the savings into a LISA and take advantage of the bonuses?0 -
So... I answered my own questions, but I thought I'd keep this up for others. This is from the HL website as an example:
Tom has a Help to Buy ISA which is valued at £3,000 on 5 April 2017. He transfers his Help to Buy ISA [they mean from HTB > LISA] on 6 April 2017 (2017/18 tax year) and qualifies for the 25% government bonus (£750). Tom can also contribute up to the Lifetime ISA allowance (£4,000) for the 2017/18 tax year and receive the government bonus for this too, resulting in up to £8,750 being paid into his Lifetime ISA in respect of the 2017/18 tax year.
- So I have £4000 in my HTB which will be about £5200 by the end of this financial year.
- I can open a LISA now with £100 with HL.
- Before the financial year is out I transfer my HTB into my LISA
- I then complete my LISA allowance of another £3900 - totalling £4000.
This brings my total LISA amount for the first year to £9200, all of which gets a 25% bonus. This is approximately the most anyone could possibly have, to use on a house, with the HTB and LISA combined.
Please do correct me if I am wrong!!!!
I thought you only got the bonus on up to £4k of contrubutions, not 25% on the total.0 -
I have a bit of a dilemma. I'm not due to turn 40 until the first week of June and so far the only Cash LiSA option available isn't due to start in June. This leaves me a tiny window on applying.
I am wondering if it is possible to sign up to a Stocks and Shares LiSA for 1 year, then transfer to a Cash LiSA the following year?
Any help on this would be appreciated.0 -
danielm2014uk wrote: »I have a bit of a dilemma. I'm not due to turn 40 until the first week of June and so far the only Cash LiSA option available isn't due to start in June. This leaves me a tiny window on applying.
I am wondering if it is possible to sign up to a Stocks and Shares LiSA for 1 year, then transfer to a Cash LiSA the following year?
Any help on this would be appreciated.
Yes, or do the stocks and shares now and transfer it to the Cash version come June.0
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