Lifetime ISAs guide

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  • StevenGude
    StevenGude Posts: 114 Forumite
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    Sorry, I guess the same as the above poster...
  • snowqueen555
    snowqueen555 Posts: 1,521 Forumite
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    I have already contributed 4k to my Hargreaves Landsown LISA for 19/20, I am going to wait for the bonus to arrive, and then transfer to Newcastle, this is technically okay isn't it?

    A question if anyone knows. Worse case scenario is there an age limit on when you can use it to buy a house? Lets say I reach my 40's and not bought one yet?
  • Alexland
    Alexland Posts: 9,653 Forumite
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    Yes that's fine as Newcastle are now accepting inbound LISA transfers.

    https://www.newcastle.co.uk/about-us/society-news/introducing-lifetime-isa-transfers/

    No age limit on buying a property but you can only contribute until 50 and may encounter practical issues opening a new account to change provider from age 40.

    Alex
  • butterwr
    butterwr Posts: 1 Newbie
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    masonic wrote: »
    Claims are made monthly, if you paid in between 6th March and 5th April, then you can expect the bonus towards the end of April or early May.

    Depositing towards the end of the tax year is the best strategy to combat the low interest rate.

    So to get best interest, would it make sense to invest the 4k until March at anything above 1% then deposit in LISA in March but still then get 25% on the 4k, ie the max 1k bonus?

    I was thinking that when it says the bonus is paid monthly it meant you get a 12th of the 25% each month but think you are saying that you get 25% on anything new paid in each month.

    If that's right then depositing in April would mean you get 25% bonus but then only 1% interest in the LISA whereas waiting until March still gets you the full 25% {1k) bonus but you can have earned more interest on your 4k during April to March when it is invested elsewhere.

    Am I getting this right?
  • masonic
    masonic Posts: 23,275 Forumite
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    Yes, your new understanding of the situation is entirely correct.
  • Flobberchops
    Flobberchops Posts: 1,279 Forumite
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    masonic wrote: »
    Claims are made monthly, if you paid in between 6th March and 5th April, then you can expect the bonus towards the end of April or early May.


    Just to follow up - got the £1000 bonus yesterday (27 April). Nice!
    : )
  • Just_Some_Boy
    Just_Some_Boy Posts: 10 Forumite
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    Hello everyone,

    New to the forums and hoping that you'll be able to help! I am 36 and have around £47,000 saved in a stocks & shares ISA. I have just become aware of Lifetime ISAs and was wondering; if the provider accepts transfers, is there an obvious flaw or barrier to the idea of transferring £4000 every year from my "standard" stocks & shares ISA to a Lifetime stocks & shares ISA and benefitting from the £1000 government top-up? I only have a basic understanding of the product at present, but can't see a problem with the idea e.g. both would be classed under my estate for the purposes of means-tested benefits in later life.

    Thanks for any help!
  • masonic
    masonic Posts: 23,275 Forumite
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    Just_Some_Boy wrote: »
    New to the forums and hoping that you'll be able to help! I am 36 and have around £47,000 saved in a stocks & shares ISA. I have just become aware of Lifetime ISAs and was wondering; if the provider accepts transfers, is there an obvious flaw or barrier to the idea of transferring £4000 every year from my "standard" stocks & shares ISA to a Lifetime stocks & shares ISA and benefitting from the £1000 government top-up? I only have a basic understanding of the product at present, but can't see a problem with the idea e.g. both would be classed under my estate for the purposes of means-tested benefits in later life.
    If you don't use more than £16k of your annual ISA allowance, it might be easiest simply to withdraw from your S&S ISA and pay into your LISA.

    Partial transfers can be done from a S&S ISA to a LISA, but providers are not obliged to accept partial transfer instructions.
  • bmulholland
    bmulholland Posts: 1 Newbie
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    Hi all,

    I read somewhere about residing in the UK being a condition for depositing into the lifetime ISA. I was planning on opening a LISA, but I'll be working in the US for periods of a few months at a time, but with a UK company and paying UK tax. Will there be an issue with adding to the LISA during this?
  • Flobberchops
    Flobberchops Posts: 1,279 Forumite
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    bmulholland wrote: »
    Hi all,

    I read somewhere about residing in the UK being a condition for depositing into the lifetime ISA. I was planning on opening a LISA, but I'll be working in the US for periods of a few months at a time, but with a UK company and paying UK tax. Will there be an issue with adding to the LISA during this?


    As with all ISAs you must be considered a UK resident to open the account (you can still keep it if you cease to be a resident, but not contribute to it). Leaving the country occasionally, or even frequently, for work shouldn't necessarily disqualify you. Usually the criteria is to reside in the UK at least 6 months of the year.
    : )
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