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  • FIRST POST
    • MSE Helen Saxon
    • By MSE Helen Saxon 16th Mar 16, 5:06 PM
    • 75Posts
    • 44Thanks
    MSE Helen Saxon
    Lifetime ISAs guide
    • #1
    • 16th Mar 16, 5:06 PM
    Lifetime ISAs guide 16th Mar 16 at 5:06 PM
    Hi!

    This is the discussion thread for the



    Click reply below to discuss. If you haven't already, join the forum to reply.


    Thanks folks,
    Last edited by MSE Andrea; 14-05-2018 at 1:33 PM.
Page 59
    • Alexland
    • By Alexland 11th Jan 18, 12:08 PM
    • 2,561 Posts
    • 1,946 Thanks
    Alexland
    I!!!8217;ve opened a !!!8216;Lifetime cash ISA!!!8217; with Skipton on the 22nd Dec 2017. So max a year of £4,000. That leaves £16,000 left of the yearly personal allowance.

    But I'd also like an easy-access-rainy-day fund, an ISA makes sense due to the tax-free interest. But I can ONLY put money in the Lifetime OR another cash ISA on any given year. (That cash ISA being with the same provider?).

    So how can I have a rainy-day-fund cash ISA easily accessible anytime alongside a Skipton cash LISA? and keep benefits from both??
    Originally posted by JackStrood
    LISAs (Cash or S&S sub-types) are different to a Cash ISA so you can have both and contribute to both during the same tax year. You can have them with the same provider or different providers subject the annual contribution limits. From what you say you if you have put £4k in your LISA you should be fine to put up to £16k in a Cash ISA.

    The situation is different with HTB ISAs which are a sub-type of Cash ISAs.

    However Cash ISAs are not very attractive at the moment so would it be better to hold your cash savings in another type of savings account and use your Personal Savings Allowance (depending on your Income Tax band) to avoid paying any tax on the interest?

    https://www.gov.uk/apply-tax-free-interest-on-savings

    Alex.
    Last edited by Alexland; 11-01-2018 at 12:11 PM.
    • ryath
    • By ryath 11th Jan 18, 8:23 PM
    • 35 Posts
    • 54 Thanks
    ryath
    Can I transfer my HL Stocks and Shares LISA into the Skipton Cash LISA and transfer my Halifax H2B ISA into Skipton? As a result of transferring my current Stocks and Shares LISA will I have to re-start the 12-month countdown for using LISA funds towards a property?
    Last edited by ryath; 11-01-2018 at 9:22 PM. Reason: Added second question
    Save £12k in 2018 target = £0 / £6,000 0% No. 006
    • Savingfemme
    • By Savingfemme 12th Jan 18, 10:08 AM
    • 1 Posts
    • 0 Thanks
    Savingfemme
    Hi I have a few questions that I wondered if anyone could advise on?

    I opened an Skipton LISA June 2017 so I assume i have until 5 April 2018 to get my £4,000 paid in and I will receive my 25% bonus in June 2018?

    After the first year the 25% bonus is paid monthly? so would that be from 6 April contributions? or for me from June? Are they paying 25% monthly on any contributions within the month? or are they paying you 1/12th of 25% per month? (I hope that makes sense?)
    • eskbanker
    • By eskbanker 12th Jan 18, 1:44 PM
    • 7,428 Posts
    • 7,999 Thanks
    eskbanker
    Can I transfer my HL Stocks and Shares LISA into the Skipton Cash LISA and transfer my Halifax H2B ISA into Skipton? As a result of transferring my current Stocks and Shares LISA will I have to re-start the 12-month countdown for using LISA funds towards a property?
    Originally posted by ryath
    Yes and no respectively....
    • eskbanker
    • By eskbanker 12th Jan 18, 1:50 PM
    • 7,428 Posts
    • 7,999 Thanks
    eskbanker
    I opened an Skipton LISA June 2017 so I assume i have until 5 April 2018 to get my £4,000 paid in and I will receive my 25% bonus in June 2018?
    Originally posted by Savingfemme
    The bonus payment for 2017/18 will be at the start of the tax year (late April or early May) regardless of when you opened the LISA.

    After the first year the 25% bonus is paid monthly? so would that be from 6 April contributions? or for me from June?
    Originally posted by Savingfemme
    April onwards.

    Are they paying 25% monthly on any contributions within the month? or are they paying you 1/12th of 25% per month?
    Originally posted by Savingfemme
    The former, 25% on any contributions, i.e. if you pay in the whole annual allowance of £4K in April (after 6th) you'd get a £1K bonus in May.
    • Lungboy
    • By Lungboy 12th Jan 18, 2:25 PM
    • 1,405 Posts
    • 1,346 Thanks
    Lungboy
    Am I correct in thinking that LISAs can't be accessed if someone is retired early due to ill health, only if they are terminal? As opposed to workplace pension and sipps?
    • Alexland
    • By Alexland 12th Jan 18, 7:22 PM
    • 2,561 Posts
    • 1,946 Thanks
    Alexland
    Am I correct in thinking that LISAs can't be accessed if someone is retired early due to ill health, only if they are terminal? As opposed to workplace pension and sipps?
    Originally posted by Lungboy
    It can be accessed before 60 without penalty if you are completing on a qualifying property purchase, die or are diagnosed as terminally ill with less than 12 months to live.

    Otherwise you loose the bonus and pay a small penalty on the withdrawn amount.

    Alex.
    • AlluringRage
    • By AlluringRage 14th Jan 18, 1:40 PM
    • 2 Posts
    • 0 Thanks
    AlluringRage
    Advice
    Hi,
    I opened a LISA in June 2017 with £1 (should have done this much earlier) Iím gonna put in £3999 before April so I get my bonus.

    If I put in another £4000 between April 6th 2018 and June 2018 dose that mean Iíd get a bonus for both amounts?

    Iíd be looking to purchase my Dads house July/Aug 2018.

    Clarification on this would be much appreciated.
    Thank you in advance.
    • Alexland
    • By Alexland 14th Jan 18, 4:21 PM
    • 2,561 Posts
    • 1,946 Thanks
    Alexland
    Hi,
    I opened a LISA in June 2017 with £1 (should have done this much earlier) Iím gonna put in £3999 before April so I get my bonus.

    If I put in another £4000 between April 6th 2018 and June 2018 dose that mean Iíd get a bonus for both amounts?

    Iíd be looking to purchase my Dads house July/Aug 2018.

    Clarification on this would be much appreciated.
    Thank you in advance.
    Originally posted by AlluringRage
    Yes you will have £10k in the account by July/Aug as the second bonus should turn up a month or two after the second tax year contribution. Once you have the second bonus and with the account being open 12 months you can buy your dad's house assuming all other criteria are ok.
    Last edited by Alexland; 14-01-2018 at 4:25 PM.
    • coldjim
    • By coldjim 15th Jan 18, 8:56 AM
    • 33 Posts
    • 2 Thanks
    coldjim
    Yes you will have £10k in the account by July/Aug as the second bonus should turn up a month or two after the second tax year contribution. Once you have the second bonus and with the account being open 12 months you can buy your dad's house assuming all other criteria are ok.
    Originally posted by Alexland


    Hey, I know this post isn't related to me, but I was just wondering if you could clarify something for me on the second tax year contribution.
    Why would this be paid a month or two after the tax year? why would you not have to wait till next tax year to get the second £1000?


    My situation is that I have been saving in my HTB ISA since December 2015 and have £6459.93 saved up so far (£4292.27 before April 2017). I have opened a Cash Lisa with Skipton in the middle of last year and have put £1 in to start the timer.
    My plan is to transfer this money into the cash lisa soon and then top it up to get my £2k bonus for this year (from the HTB and additional funds).
    Are you then saying I can contribute ANOTHER £4k after the 5th April and get another £1k in a couple months after? So I could potentially have £15k in my Lisa for a house? so £3k bonus in all?


    Also I was wondering could I do a partial contribution to the Lisa, keeping the money after the 5th April 2017 in the HTB getting 3.5% interest? Or is this not allowed? Do I have to do a full transfer? I know I can't get the bonus on both and don't plan too, but its a good savings account then at 3.5% and can continue paying in the £200 a month, as I believe there is no penalty for taking the money out when I need it unlike the Lisa?


    Cheers. Any answers would be appreciated. Want to get the most amount I can out of this!
    Last edited by coldjim; 15-01-2018 at 9:53 AM.
    • eskbanker
    • By eskbanker 15th Jan 18, 1:00 PM
    • 7,428 Posts
    • 7,999 Thanks
    eskbanker
    Hey, I know this post isn't related to me, but I was just wondering if you could clarify something for me on the second tax year contribution.
    Why would this be paid a month or two after the tax year? why would you not have to wait till next tax year to get the second £1000?


    My situation is that I have been saving in my HTB ISA since December 2015 and have £6459.93 saved up so far (£4292.27 before April 2017). I have opened a Cash Lisa with Skipton in the middle of last year and have put £1 in to start the timer.
    My plan is to transfer this money into the cash lisa soon and then top it up to get my £2k bonus for this year (from the HTB and additional funds).
    Are you then saying I can contribute ANOTHER £4k after the 5th April and get another £1k in a couple months after? So I could potentially have £15k in my Lisa for a house? so £3k bonus in all?
    Originally posted by coldjim
    LISA bonus payments are to be made monthly from the 2018/19 tax year onwards, the annual payment this year is just a one-off. So, if you pay £4K into a LISA between 6 April and 5 May 2018, you'll receive the 25% by late May or maybe early June.

    Also I was wondering could I do a partial contribution to the Lisa, keeping the money after the 5th April 2017 in the HTB getting 3.5% interest? Or is this not allowed? Do I have to do a full transfer? I know I can't get the bonus on both and don't plan too, but its a good savings account then at 3.5% and can continue paying in the £200 a month, as I believe there is no penalty for taking the money out when I need it unlike the Lisa?
    Originally posted by coldjim
    Subject to both providers allowing a partial transfer this is OK as far as HMRC are concerned. You could indeed continue to pay into a HTB but only up to the point you bought your first property, and personally I'd be looking at the 25% rather than the 3.5% unless you'll be in a position to fill your LISA with everything available every year and need somewhere for the overflow.
    • simon430
    • By simon430 15th Jan 18, 2:24 PM
    • 3 Posts
    • 1 Thanks
    simon430
    Hello,


    I opened a Nutmeg LISA straight away with £100, then I transferred this to Skipton. The value increased a little to £100.73 so this is what is currently sat in my Skipton LISA.


    My question is, I've now transferred in my HTB and trying to calculate my remaining £4000 allowance. I'm right in thinking that interest earned post April 17 goes towards the annual allowance? So have I contributed £100 to my LISA, or is it £100.73? I know it's only 73p but may as well max out free money.
    • shaldonkoolma
    • By shaldonkoolma 15th Jan 18, 4:36 PM
    • 3 Posts
    • 0 Thanks
    shaldonkoolma
    taxpayer and PIP
    Hi folks, sorry its a pretty basic (lol) question, and I have searched the forum for answers to this already....
    In order for me to invest in a LISA and get the governement bonus for my 18 year old son who is a student, does he have to be a tax payer?
    Also, my daughter is receiving PIP, could someone please clarify if this may be affected by saving in an ISA for her, and if it is, what my next best investment option for her would be so she is not disadvantaged compared to my son?
    thank you in advance..
    • eskbanker
    • By eskbanker 15th Jan 18, 7:06 PM
    • 7,428 Posts
    • 7,999 Thanks
    eskbanker
    I opened a Nutmeg LISA straight away with £100, then I transferred this to Skipton. The value increased a little to £100.73 so this is what is currently sat in my Skipton LISA.

    My question is, I've now transferred in my HTB and trying to calculate my remaining £4000 allowance. I'm right in thinking that interest earned post April 17 goes towards the annual allowance? So have I contributed £100 to my LISA, or is it £100.73? I know it's only 73p but may as well max out free money.
    Originally posted by simon430
    These are two separate issues - HTB interest and LISA interest.

    For your HTB money, anything transferred into a LISA counts towards the £4K annual allowance, except for the balance at 5 April 2017 plus interest accrued but not paid up to that date.

    Interest paid on LISA contributions, 73p in your case (so far), doesn't count towards the allowance.
    • eskbanker
    • By eskbanker 15th Jan 18, 7:08 PM
    • 7,428 Posts
    • 7,999 Thanks
    eskbanker
    In order for me to invest in a LISA and get the governement bonus for my 18 year old son who is a student, does he have to be a tax payer?
    Originally posted by shaldonkoolma
    No, but he does need to be the one opening and funding the account.
    • ryath
    • By ryath 15th Jan 18, 7:54 PM
    • 35 Posts
    • 54 Thanks
    ryath
    Yes and no respectively....
    Originally posted by eskbanker
    Thanks eskbanker.

    I have since opened a Skipton LISA and want to transfer my HTB ISA balance as at 5/4/17. Halifax were not interested in calculating the interest accrued but not paid, but Skipton's online banking has a required field for the amount to transfer. I spoke to them and they said if they send a form to Halifax and my calculation is higher than theirs as a result the transfer request would be declined. Is it really worth trying to outsmart Halifax and do it correctly one wonders? I have the numbers for working out the accrued interest but got a little lost.

    Gross interest paid 2/12/16 - £92.56 - Account balance £3692.56
    4% interest up to and including 7/12/16
    3.5% interest effective from 8/12/16
    £200 a month paid by SO on the first working day of each month

    Is this what everyone else is going through?
    Save £12k in 2018 target = £0 / £6,000 0% No. 006
    • Sjh2323
    • By Sjh2323 15th Jan 18, 8:34 PM
    • 1 Posts
    • 0 Thanks
    Sjh2323
    Not sure if anyone can help?
    I opened a LISA last July, does this mean I have to put £1k in before July this year or does it run on the tax year? So will I have to do it by March?
    • Alexland
    • By Alexland 15th Jan 18, 9:33 PM
    • 2,561 Posts
    • 1,946 Thanks
    Alexland
    Also, my daughter is receiving PIP, could someone please clarify if this may be affected by saving in an ISA for her, and if it is, what my next best investment option for her would be so she is not disadvantaged compared to my son?
    Originally posted by shaldonkoolma
    Having a LISA is treated as accessable savings when being assessed for benefits. On this sub-forum we are not experts on benefits so you might be better asking elsewhere but from what I can see there is no savings test in the PIP eligibility criteria?

    https://www.gov.uk/pip
    • Alexland
    • By Alexland 15th Jan 18, 9:39 PM
    • 2,561 Posts
    • 1,946 Thanks
    Alexland
    I have since opened a Skipton LISA and want to transfer my HTB ISA balance as at 5/4/17. Halifax were not interested in calculating the interest accrued but not paid, but Skipton's online banking has a required field for the amount to transfer. I spoke to them and they said if they send a form to Halifax and my calculation is higher than theirs as a result the transfer request would be declined. Is it really worth trying to outsmart Halifax and do it correctly one wonders?
    Originally posted by ryath
    Personally I would just use the Halifax calculation on the form for an easy life. If there is a systematic errors in the way this has been implemented by the HTB providers (we haven't heard one getting it right yet?) then I wouldn't expect HMRC to come down to harshly on individual customers.

    Alex
    • Alexland
    • By Alexland 15th Jan 18, 9:43 PM
    • 2,561 Posts
    • 1,946 Thanks
    Alexland
    Not sure if anyone can help?
    I opened a LISA last July, does this mean I have to put £1k in before July this year or does it run on the tax year? So will I have to do it by March?
    Originally posted by Sjh2323
    It's based on tax years which ends on the 5th April and start on 6th April. However providers get busy towards the end of the tax year so usually worth getting things done in advance. You can put up to £4k into a LISA each tax year to receive a 25% bonus of up to £1k. If you only put £1k in this tax year your bonus will only be £250.

    Alex
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