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  • FIRST POST
    • Hilly1990
    • By Hilly1990 3rd Mar 18, 2:36 PM
    • 15Posts
    • 12Thanks
    Hilly1990
    Lifetime ISA
    • #1
    • 3rd Mar 18, 2:36 PM
    Lifetime ISA 3rd Mar 18 at 2:36 PM
    I currently hold a Lifetime Isa with Skipton Building Society and have put 4000 in a few months ago which I believe will give me the government bonus of 1000.

    To receive the bonus for the next tax year 2019, am I able to pay an additional 4000 in around February time or would this have to be spread throughout the year?
Page 2
    • 6022tivo
    • By 6022tivo 6th Mar 18, 12:22 AM
    • 548 Posts
    • 130 Thanks
    6022tivo
    I think I now understand.

    So my Halifax HTB Isa I have been paying 200 a month in for the last 11 months sine April 2017 2200.

    I have just transferred it to Skipton (total of about 5k) so does this mean I can pay only a further 1800 in before the end of this month?
    • eskbanker
    • By eskbanker 6th Mar 18, 1:03 AM
    • 7,402 Posts
    • 7,963 Thanks
    eskbanker
    I think I now understand.

    So my Halifax HTB Isa I have been paying 200 a month in for the last 11 months sine April 2017 2200.

    I have just transferred it to Skipton (total of about 5k) so does this mean I can pay only a further 1800 in before the end of this month?
    Originally posted by 6022tivo
    The interest you earned on the HTB during 2017/18 also counts towards the 4K annual LISA allowance so should be deducted from that 1800. I believe that somewhere on Skipton's online banking it shows the remaining allowance but can't speak from direct experience....
    • diggingdude
    • By diggingdude 7th Mar 18, 3:03 PM
    • 256 Posts
    • 278 Thanks
    diggingdude
    Sorry to jump in on someone else's thread but it is related. I am currently waiting for the transfer from HTB to LISA to take place so that I can top up before end of tax year. Due to a serious car accident I won't be buying until say june 2019. Forgetting next years contribution which is sitting in savings accoungt, could i pay in 4000 April 20th say 2019 and claim the full bonus for that year. I think I can but it sounds too good to be true.

    Once again sorry for jumping on a thread
    • sully1311
    • By sully1311 7th Mar 18, 4:22 PM
    • 58 Posts
    • 13 Thanks
    sully1311
    I hope that this is a typing error. You can only subscribe to one LISA in any tax year. If you have opened two in January and paid into two this year then you are in breach of the rules and HMRC will be in touch.
    Originally posted by ValiantSon
    Not a typo. My girlfriend has also opened a Lifetime ISA.
    • ValiantSon
    • By ValiantSon 7th Mar 18, 7:34 PM
    • 2,004 Posts
    • 1,853 Thanks
    ValiantSon
    Not a typo. My girlfriend has also opened a Lifetime ISA.
    Originally posted by sully1311
    I'm puzzled by your reply. Are you now saying that you haven't actually paid in to two LISAs yourself, but rather that you have paid in to one that is in your name and your girlfriend has paid in to another that is in her name? If it is, then that isn't what you initially wrote:

    Yep, I opened up 2 Lifetime ISAs in January and put the max in straight away.
    Originally posted by sully1311
    If it now turns out that actually you have one LISA and your girlfriend also has a LISA then that is completely different.
    • peanuts92
    • By peanuts92 7th Mar 18, 8:39 PM
    • 107 Posts
    • 17 Thanks
    peanuts92
    Hello,

    I'm confused about what i've read on this forum and what i've read in the T&Cs of Skipton's LISA regarding when the bonus for the second year (tax year 18/19) will be paid out?

    To quote Skipton's Online Cash Lifetime ISA T&Cs:
    "G - When is the 25% bonus paid into my account?
    We will claim the 25% bonus from HMRC on your behalf. For the 2017/18 tax year, HMRC will pay the bonus within 28 days of 6 April 2018. From the 2018/19 tax year onwards, HMRC will pay the bonus based on the contributions you have made each month. This will be paid by HMRC within 4-9 weeks. The bonus is paid on all contributions you make before you reach the age of 50."


    So regarding the tax year 2018-19, some people have said that you can simple wait until just before the end of the next tax year and deposit your second chunk of 4000 in lets say March 2019 and still get the full 1000 bonus. But surely this wouldn't work as the bonus is paid monthly for the second year?

    I've got a Skipton Cash LISA and am planning to deposit 4000 at the end of this month for this tax year 17-18. But am unsure of when to deposit the next chunk of 4000 for the next tax year 18-19? So does it make a difference if i make my second deposit at the start or end of the next tax year 18-19?

    Sorry i'm getting confused here
    • Alexland
    • By Alexland 7th Mar 18, 8:54 PM
    • 2,544 Posts
    • 1,928 Thanks
    Alexland
    So regarding the tax year 2018-19, some people have said that you can simple wait until just before the end of the next tax year and deposit your second chunk of 4000 in lets say March 2019 and still get the full 1000 bonus. But surely this wouldn't work as the bonus is paid monthly for the second year?
    Originally posted by peanuts92
    It would work - you would get a zero bonus each month until after the contribution. So if you waited until towards the end of the next tax year you would get your associated monthly bonus shortly after the start of the subsequent tax year.

    Alex
    • 6022tivo
    • By 6022tivo 7th Mar 18, 8:56 PM
    • 548 Posts
    • 130 Thanks
    6022tivo
    Make the full deposit at the end. Get the interest from somewhere else in the meantime.
    • ValiantSon
    • By ValiantSon 7th Mar 18, 8:57 PM
    • 2,004 Posts
    • 1,853 Thanks
    ValiantSon
    It doesn't matter when you deposit the funds, the bonus will be paid on the balance deposited following the end of each month. If you pay in c.333.33 every month you will get c.83.33 bonus each month, but if you pay in 4,000 in April 2019, you will get 1,000 following the end of the tax year. It amounts to the same thing.

    The possible advantage of waiting until near the end of the tax year is that you can benefit from a higher interest rate on that money in a different account.
    • peanuts92
    • By peanuts92 7th Mar 18, 9:55 PM
    • 107 Posts
    • 17 Thanks
    peanuts92
    Thanks guys!
    • GM1880
    • By GM1880 8th Mar 18, 12:00 AM
    • 149 Posts
    • 54 Thanks
    GM1880
    I've just switched by Help to Buy ISA with Barclays to Skipton's Lifetime ISA, the form I had to send off asked me to confirm I wanted them to instruct Barclays to close their ISA once the funds were transferred, which I did. I put in the additional 1900 or so into the lifetime ISA to take it up to the 4000 max. That's now showing in the Skipton ISA, but by Barclays ISA has now been closed, but no signs of the 2100 or so from that ISA in my Skipton one.

    Presumably it does take a little time to transfer, but no reference to that in the small print. Ought I be concerned?
    • Ed-1
    • By Ed-1 8th Mar 18, 8:57 AM
    • 2,228 Posts
    • 1,186 Thanks
    Ed-1
    I've just switched by Help to Buy ISA with Barclays to Skipton's Lifetime ISA, the form I had to send off asked me to confirm I wanted them to instruct Barclays to close their ISA once the funds were transferred, which I did. I put in the additional 1900 or so into the lifetime ISA to take it up to the 4000 max. That's now showing in the Skipton ISA, but by Barclays ISA has now been closed, but no signs of the 2100 or so from that ISA in my Skipton one.

    Presumably it does take a little time to transfer, but no reference to that in the small print. Ought I be concerned?
    Originally posted by GM1880
    Many ISA transfers are still done by cheque so it'll take a few days. Skipton are supposed to backdate interest to the date on the cheque received from Barclays.
    • diggingdude
    • By diggingdude 12th Mar 18, 7:35 PM
    • 256 Posts
    • 278 Thanks
    diggingdude
    I must admit that makes me worried as well. it does feel unsettling with the H2B closed and the money not currently showing anywhere
    • aj23
    • By aj23 13th Mar 18, 9:42 AM
    • 494 Posts
    • 174 Thanks
    aj23
    And Skipton actually increased their interest rates in line with the base rate increase, so it will potentially go up a few more times.
    • AimHigh
    • By AimHigh 13th Mar 18, 1:05 PM
    • 117 Posts
    • 41 Thanks
    AimHigh
    As per the advice already given, Skipton told me that they receive the H2B money via cheque and therefore it takes 7 working days to process.
    • Fisbister
    • By Fisbister 13th Mar 18, 4:37 PM
    • 1 Posts
    • 0 Thanks
    Fisbister
    Help to Buy - LISA
    Some help please as am getting very confused over the H2B - Skipton Lifetime transfer.

    I have 6.5k in a Halifax Help to Buy and considering transferring to a Skipton Lifetime ISA (aware i have missed the 8 march deadline). However my feeling is that I should transfer 4k to the LISA now (before 6 April deadline for the 18/19 tax year) and leave the remaining balance in my Halifax help to buy and keep paying in the 200 max in this ISA and benefit from the 3.5% interest it pays out.

    However from reading this thread it appears the transfer to Skipton means my Halifax Help to Buy ISA would automatically close. Is this correct? Is so what happens to the remaining money in my H2B ISA outside of the 4k i have transferred to my LISA?

    Thanks
    • eskbanker
    • By eskbanker 14th Mar 18, 12:16 AM
    • 7,402 Posts
    • 7,963 Thanks
    eskbanker
    I have 6.5k in a Halifax Help to Buy and considering transferring to a Skipton Lifetime ISA (aware i have missed the 8 march deadline). However my feeling is that I should transfer 4k to the LISA now (before 6 April deadline for the 18/19 tax year)
    Originally posted by Fisbister
    The whole point about Skipton's deadline (which was 2 March rather than 8th btw) was that it was the last chance to transfer HTB to their LISA before the end of this tax year, so if you didn't start it by then then you can't do it now.

    However, there's nothing stopping you from withdrawing 4K from your HTB and paying it into the Skipton LISA without using the transfer process. This won't close the Halifax HTB account but I'm not sure where you read that a partial transfer would have closed it anyway?
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