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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 73
    • asc1991
    • By asc1991 8th Mar 18, 3:27 PM
    • 53 Posts
    • 6 Thanks
    asc1991
    Thanks.

    That was one of the scenarios I considered. Whilst £1000 would be better, £750 is still better than nothing.

    HMRC had absolutely no idea how it would work, they simply haven't considered it at all.
    • asc1991
    • By asc1991 8th Mar 18, 3:40 PM
    • 53 Posts
    • 6 Thanks
    asc1991
    I've just been told that 2017/18 bonuses may not be payed until May or June and that this means that those who wanted to use their LISA funds for a house deposit in 2018/19, but before the bonus for 2017/18 was paid, would not be able to use their bonus!?
    • eddiejones
    • By eddiejones 8th Mar 18, 3:50 PM
    • 68 Posts
    • 6 Thanks
    eddiejones
    I've just been told that 2017/18 bonuses may not be payed until May or June and that this means that those who wanted to use their LISA funds for a house deposit in 2018/19, but before the bonus for 2017/18 was paid, would not be able to use their bonus!?
    Originally posted by asc1991
    Why would they not be able to use their bonus? Presumably if they were buying in July (or after the bonus had been paid), the bonus would be in the account for them to use?
    • asc1991
    • By asc1991 8th Mar 18, 3:52 PM
    • 53 Posts
    • 6 Thanks
    asc1991
    Hi, I think you misread.
    • eddiejones
    • By eddiejones 8th Mar 18, 3:57 PM
    • 68 Posts
    • 6 Thanks
    eddiejones
    So is there a lack of awareness with people who deal with customers at Skipton? I am talking about the 'remaining allowance for 2017-2018 tax year'. They use the words 'the remaining allowance showing' rather than 'the remaining allowance is' in order to shift blame to a computer?...
    Anyway, I've been told that mine is 1999, i.e. my initial £1 + 10 months of £200 into the HTB which I transferred over. And zero reduction for interest accrued during the 2017-2018 tax year. But the rule is that there is a reduction for that, right?

    If there is a reduction, how do they know how much interest has been accrued for the tax year? Has the interest been added at the end of the tax year (i.e. 5 April), rather than January 1 (which is I guess what I have been used to previously).

    Incidently, what happens if I transfer too much? I don't mind having some extra money in there temporarily, which'll get corrected but I don't want to be punished financially for it...
    • eddiejones
    • By eddiejones 8th Mar 18, 4:02 PM
    • 68 Posts
    • 6 Thanks
    eddiejones
    Hi, I think you misread.
    Originally posted by asc1991
    Ok, I'm not knowledgeable here, I was asking questions in order to improve my own understanding .

    I guess you put what you meant in a rather complicated way. But what you were saying was

    "If my bonus is added on June 30 2018, then I can't buy a house using the bonus until after that date"

    I guess. Though don't you need to hold your LISA for 1 year and the Skipton LISA only started in June 2017 anyway (I could be wrong here), so this is a small window?
    • asc1991
    • By asc1991 8th Mar 18, 4:05 PM
    • 53 Posts
    • 6 Thanks
    asc1991
    Sorry that I sounded short - I clicked submit too early and it seems my edit didn't go through!
    Last edited by asc1991; 08-03-2018 at 4:12 PM.
    • asc1991
    • By asc1991 8th Mar 18, 4:41 PM
    • 53 Posts
    • 6 Thanks
    asc1991
    New update -

    Apparently if you use a Lifetime ISA whilst a bonus is accrued and has not been paid - you DO get that bonus. But you get it 1 month after the last deposit was made. If that date is too late for the property purchase it seems that you just receive that as a lump cash sum.
    • Alexland
    • By Alexland 8th Mar 18, 5:42 PM
    • 2,388 Posts
    • 1,786 Thanks
    Alexland
    Apparently if you use a Lifetime ISA whilst a bonus is accrued and has not been paid - you DO get that bonus. But you get it 1 month after the last deposit was made. If that date is too late for the property purchase it seems that you just receive that as a lump cash sum.
    Originally posted by asc1991
    Yes but the bonus would be added into the LISA so a withdrawal penalty would apply before 60?
    • asc1991
    • By asc1991 8th Mar 18, 5:44 PM
    • 53 Posts
    • 6 Thanks
    asc1991
    I've been told that if my conveyancer provides proof of the house purchase to my LISA provider, then the provider will pay the entire bonus (no 25% fee) to the solicitor for the customer to them receive.
    • ferpesin
    • By ferpesin 8th Mar 18, 7:42 PM
    • 3 Posts
    • 0 Thanks
    ferpesin
    Hi guys,

    me and my girlfriends transfers went through but we have find two different situations:
    - I had my Help to buy ISA in Barclays where they were paying interest to me monthly. Once my money arrive toSskipton, my remaining ISA allowance changed to £17,999.00 (the £2000 I put in my Help to buy plus £1 pound when I open my Lifetime ISA). As I spected, interest paid into my Help to buy Isa didn't count towards my allowance.

    - My girlfriend had a Help to buy ISA in NationWide where they were paying interest anually. When her money arrive to skipton, her remaining ISA allowance changed to £17,952... (the £2000 she put in her Help to buy plus £1 pound when she open her Lifetime ISA plus £46...?). She has no other ISAs and the only extra payment into the Help to buy Isa was the interest added in January (£48.. not even the same they took extra).

    I have found this in the Skipton LISA T&Cs:
    "You can only transfer once from a Help to Buy ISA without affecting your Lifetime ISA allowance. If you transfer your Help to Buy ISA to a Lifetime ISA in the 2017/18 tax year, you can transfer the balance as at 5 April 2017, plus any interest earned, and the amount transferred won!!!8217;t count towards your 2017/18 Lifetime ISA subscription limit of £4,000.
    Any payments into, or interest added to your Help to Buy ISA after 5 April 2017 which you then transfer to a Lifetime ISA will be treated as part of your annual Lifetime ISA allowance."

    Is that right? I though interest paid didn't count towards your allowance regardless of the year (as it happened in my transfer). Can you guys see what criteria they applied in yours? I have tried to get in contact with Skipton and Nationwide but they keep sending me back and forth.

    Kind regards
    • eddiejones
    • By eddiejones 8th Mar 18, 9:36 PM
    • 68 Posts
    • 6 Thanks
    eddiejones
    Well I'm sceptical that it's correct but Skipton tell me that my allowance is £1999 (i.e. £4k - £1 original balance - £2000 HTB contributions for 17-18).

    That is despite interest payments in Jan, and Feb (when account was closed), some of which would be interest on 17-18 contributions.

    Perhaps the £46 is what they say is the interest for your girlfriend's 17-18 HTB contributions? Presumably she got some more interest when the HTB ISA was closed?
    • ferpesin
    • By ferpesin 9th Mar 18, 7:43 AM
    • 3 Posts
    • 0 Thanks
    ferpesin
    Yes eddiejones, she got paid £3 on closing(so total interest paid £51).
    What I don't understand is why the different criteria? I have interest payments through all 17/18 tax year and none counted. Also, as I read before, why interest paid into an ISA wrapper now counts towards your ISA allowance.
    I think this is a mess and not fair.

    Kind regards
    • eskbanker
    • By eskbanker 9th Mar 18, 8:44 AM
    • 7,091 Posts
    • 7,515 Thanks
    eskbanker
    Yes eddiejones, she got paid £3 on closing(so total interest paid £51).
    What I don't understand is why the different criteria? I have interest payments through all 17/18 tax year and none counted. Also, as I read before, why interest paid into an ISA wrapper now counts towards your ISA allowance.
    I think this is a mess and not fair.
    Originally posted by ferpesin
    As per previous posts on this thread, the official position is that HTB interest earned/accrued up to 5 April 2017 doesn't count towards the £4K LISA limit when transferred (during 2017/18) but anything since then does, so it sounds like your girlfriend's transfer is the one being processed correctly and yours is the one that isn't.

    HTB interest paid during 2017/18 does count towards the annual £4K LISA limit when transferring but not the overall £20K ISA allowance for 2017/18, as transfers between ISA products never affect the latter.
    • eddiejones
    • By eddiejones 9th Mar 18, 9:08 AM
    • 68 Posts
    • 6 Thanks
    eddiejones
    As per previous posts on this thread, the official position is that HTB interest earned/accrued up to 5 April 2017 doesn't count towards the £4K LISA limit when transferred (during 2017/18) but anything since then does, so it sounds like your girlfriend's transfer is the one being processed correctly and yours is the one that isn't.

    HTB interest paid during 2017/18 does count towards the annual £4K LISA limit when transferring but not the overall £20K ISA allowance for 2017/18, as transfers between ISA products never affect the latter.
    Originally posted by eskbanker
    Right. What happens if I pay *too much* into my LISA? I.e. Skipton tell me an amount which is clearly wrong as doesn’t include any interest at all. If all that happens is that the excess is refunded at some point, then I am happy to make a bit of a guess...
    • Ed-1
    • By Ed-1 9th Mar 18, 10:23 AM
    • 2,200 Posts
    • 1,175 Thanks
    Ed-1
    Right. What happens if I pay *too much* into my LISA? I.e. Skipton tell me an amount which is clearly wrong as doesn’t include any interest at all. If all that happens is that the excess is refunded at some point, then I am happy to make a bit of a guess...
    Originally posted by eddiejones
    The system won't let you pay in more than your LISA allowance.
    • eddiejones
    • By eddiejones 9th Mar 18, 10:27 AM
    • 68 Posts
    • 6 Thanks
    eddiejones
    Is the 'system' Skipton's system? Because they (under my understanding) have a wrong view of what my allowance is.

    They exclude all interest. Even though some of that paid in Jan 18 and in Feb when closing the account applies to 17-18 contributions.
    • Ed-1
    • By Ed-1 9th Mar 18, 11:16 AM
    • 2,200 Posts
    • 1,175 Thanks
    Ed-1
    Is the 'system' Skipton's system? Because they (under my understanding) have a wrong view of what my allowance is.

    They exclude all interest. Even though some of that paid in Jan 18 and in Feb when closing the account applies to 17-18 contributions.
    Originally posted by eddiejones
    They are the ones reporting what you've contributed to HMRC.
    • eddiejones
    • By eddiejones 9th Mar 18, 11:36 AM
    • 68 Posts
    • 6 Thanks
    eddiejones
    They are the ones reporting what you've contributed to HMRC.
    Originally posted by Ed-1
    Right, ok. So if they let me contribute more than they probably should, that's good for me .
    • donnadrake
    • By donnadrake 9th Mar 18, 5:05 PM
    • 2 Posts
    • 0 Thanks
    donnadrake
    Hi,


    I have been reading into the help to buy and LISA accounts and decided as I am aiming to buy next year and I am saving for a desposit, the LISA account would be perfect for me. I made out a plan to save the £4k in a LISA over the next 12 months and the remaining savings in my current ISA account I have open with bank of scotland.


    Before I went ahead and opended the LISA account I was unsure if i could have bother LISA and ISA, to my finindgs I could as long as the £20k tax free limit was met, £4k in LISA £16k in ISA - made perfect sense and I had a plan.


    Last week I went ahead and opended a Skipton LISA account and on my way to saving £4k wih a 25% bonus in 12 months


    I had a meeting with the bank of scotland today to degrade my account and stop wasting £15 a month for beneifts i never use! I mentioned the LISA account to them and to my suprise I was advised that as I am funding a LISA with Skipton I am unable to fund my ISA with the bank of scotland? I cant even split the £20k?


    Made me very confused........ I contacted Skipton who reconfirmed I can have 1 LISA and 1 ISA as long as I dont go over my limit and suggest I contact bank of scotland to clarify!


    Before I call them and get confused with their bank talk as I am struggling to understand LISA and ISA at the best of times, thought I would best post and see is someone could explain and help me understand


    Thanks in advance
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