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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 82
    • Sussex_Dave
    • By Sussex_Dave 14th May 18, 2:15 PM
    • 25 Posts
    • 8 Thanks
    Sussex_Dave
    2nd declaration for 18-19 bonus
    Skipton have already transferred funds to my conveyancer after my conveyancer sent the declaration but I now require the £1000 18/19 bonus to be transferred once paid. I hadn't initially envisaged transferring this but a delay has meant I can use this. Skipton advised I can send a 2nd declaration to them without having to go through my solicitor but I'm unsure if this is correct?

    Any views?

    Cheers
    Dave
    • pink_pirlie
    • By pink_pirlie 14th May 18, 2:35 PM
    • 184 Posts
    • 115 Thanks
    pink_pirlie
    If Skipton are telling you that you will have to assume that is their process and that is what they require. There are no specific rules set down other than the declaration is required so they are confident that it is being used for the purchase of a first property, under £450k, etc.

    When we did ours with HL they only needed another request from the solicitor but didnít need another one from us. But we spoke with them on the phone many times due to the timing issues we had - money withdrawn on 1 year anniversary on 20 Apr and the 17/18 bonus withdrawn day after it was paid for completion 1 working day later.

    Nothing wrong with submitting now to say pay when received as itís still a few weeks away from the bonus being received, assuming you made the deposit in April.
    • Sussex_Dave
    • By Sussex_Dave 14th May 18, 7:45 PM
    • 25 Posts
    • 8 Thanks
    Sussex_Dave
    Thanks for the reply. I will post to Skipton tomorrow requesting payment upon receipt. The process is a little unclear and I located a guide which implied each request goes through the solicitor but this wasn't transparent.
    Deposited early April so will be paid after 20th May.
    • MG42Maniac
    • By MG42Maniac 15th May 18, 8:43 AM
    • 11 Posts
    • 0 Thanks
    MG42Maniac
    We've got our LISA with Nutmeg. Both my partner and I opened the accounts on 29th June 2017, we are looking to complete on our new build on the 29th June. Both first-time buyers and house is £440K. This is literally a year to the day. We'd obviously need to request funds ahead of time but I am wondering if there is a way to dodge the 25% fine? If there is, I am wondering if we should add another £4000 each into the 18/19 year to get another £2000 bonus?
    • pink_pirlie
    • By pink_pirlie 15th May 18, 9:38 AM
    • 184 Posts
    • 115 Thanks
    pink_pirlie
    Push completion a few days, probably a week to be safe. Thatís the only way you can do it.

    Your solicitor would need the money in their account the day before completion. If your solicitor is good they wouldnít think to exchange without some certainty the funds are on their way else you will lose c.6% of your money.

    You can do all the prep work in advance. Sending off the forms for Nutmeg to release the funds on the day you want. In theory (although probably would be quicker) they have 30 days to release the funds after receiving the declaration and requests from your solicitor. So start the ball rolling now. Just be clear you do not want the money until on / after the 1 year anniversary. If your money is in funds it will take longer.

    Ours was released on the 1 year by HL and we managed to get the 17/18 bonus out in 24 hours in time for completion. But I donít know whether nutmeg will be as helpful as HL were.

    Re the 18/19 money - if you put in you have to know that you will definitely be able to use it for your house purchase or be willing to leave it until retirement. If you need the money or there is uncertainty, donít do it. Else you will lose 6% of the £4000 which is not insubstantial.

    Good luck!!
    • Rdh181
    • By Rdh181 15th May 18, 8:03 PM
    • 3 Posts
    • 0 Thanks
    Rdh181
    Hi,

    I have an issue with my AJ Bell Stocks & Shares LISA bonus being paid.

    I did have a Halifax Help to Buy ISA, and I opened a Skipton Cash LISA last year and put in £1 (to start the 1 year clock and to max the interest in my help to buy ISA) with the intention of transferring the H2B ISA into it before April 2018.

    I missed the deadline so opened an AJ Bell S&S LISA which had a later transfer deadline.

    AJ Bell have emailed me to say that the bonus can!!!8217;t be paid because I didn!!!8217;t close the Skipton LISA, or transfer the money in that account to the AJ Bell account.

    I will be phoning HMRC tomorrow to see if there!!!8217;s anything they can do but I was wondering whether anyone had any ideas on whether HMRC would allow the bonus to be paid - for example, if I transferred the money from the Skipton to AJ Bell now, or closed it now?

    Any help would be appreciated.

    Thanks
    • masonic
    • By masonic 15th May 18, 8:28 PM
    • 9,528 Posts
    • 6,683 Thanks
    masonic
    Hi,

    I have an issue with my AJ Bell Stocks & Shares LISA bonus being paid.

    I did have a Halifax Help to Buy ISA, and I opened a Skipton Cash LISA last year and put in £1 (to start the 1 year clock and to max the interest in my help to buy ISA) with the intention of transferring the H2B ISA into it before April 2018.

    I missed the deadline so opened an AJ Bell S&S LISA which had a later transfer deadline.

    AJ Bell have emailed me to say that the bonus can!!!8217;t be paid because I didn!!!8217;t close the Skipton LISA, or transfer the money in that account to the AJ Bell account.

    I will be phoning HMRC tomorrow to see if there!!!8217;s anything they can do but I was wondering whether anyone had any ideas on whether HMRC would allow the bonus to be paid - for example, if I transferred the money from the Skipton to AJ Bell now, or closed it now?

    Any help would be appreciated.

    Thanks
    Originally posted by Rdh181
    Making some assumptions about dates and exactly what you did, your Skipton LISA was your valid LISA for the 2017/18.

    Your AJ Bell LISA for the 2017/18 tax year is invalid and any money you paid in or transferred relating to that tax year must be removed and would not be eligible for the bonus or tax free status. As it is a S&S ISA and not a cash ISA, HMRC tend not to be as lenient, but it would be worth phoning them to see what they say. Any part of your Halifax HTB ISA built up during the 2016/17 tax year would be ok to transfer to AJ Bell and eligible for the bonus.

    If you'd realised before the end of the tax year and acted very quickly, transferring/closing the Skipton LISA *might* have saved you, but your time ran out on 5th April unfortunately.
    Last edited by masonic; 15-05-2018 at 8:32 PM.
    • Rdh181
    • By Rdh181 15th May 18, 9:04 PM
    • 3 Posts
    • 0 Thanks
    Rdh181
    Thanks.

    In terms of dates:

    H2B opened in 2015/16 tax year.
    Skipton in 17/18 tax year.
    AJ Bell 17/18 tax year.

    Not sure that changes anything but can only see what HMRC say I guess.
    • masonic
    • By masonic 15th May 18, 9:34 PM
    • 9,528 Posts
    • 6,683 Thanks
    masonic
    Thanks.

    In terms of dates:

    H2B opened in 2015/16 tax year.
    Skipton in 17/18 tax year.
    AJ Bell 17/18 tax year.

    Not sure that changes anything but can only see what HMRC say I guess.
    Originally posted by Rdh181
    AJ Bell will need to go through a "repair" process on the LISA and may liaise with HMRC to ensure the correct process is followed.

    Assuming you kept up contributions, then the best case scenario is that a significant part of the H2B ISA was transferable without breaking the rules and should be eligible for the bonus. About £2400 (i.e. everything paid in during 17/18) would need to be removed and would not be eligible for the bonus. So it might not be quite as bad as first thought.

    Edit: But there is a specific new regulation from the 2017 Act covering transfers from HTB to LISAs that makes the whole transfer ineligible - see below.
    Last edited by masonic; 16-05-2018 at 6:55 AM.
    • sully1311
    • By sully1311 15th May 18, 9:35 PM
    • 61 Posts
    • 15 Thanks
    sully1311
    Thanks.

    In terms of dates:

    H2B opened in 2015/16 tax year.
    Skipton in 17/18 tax year.
    AJ Bell 17/18 tax year.

    Not sure that changes anything but can only see what HMRC say I guess.
    Originally posted by Rdh181
    You're in the wrong here I'm afraid as you are only allowed 1 LISA per tax year. You can phone up to give it a shot but don't be surprised if you can't get your way.
    • masonic
    • By masonic 15th May 18, 9:39 PM
    • 9,528 Posts
    • 6,683 Thanks
    masonic
    You're in the wrong here I'm afraid as you are only allowed 1 LISA per tax year. You can phone up to give it a shot but don't be surprised if you can't get your way.
    Originally posted by sully1311
    True, but the AJ Bell LISA was funded by a transfer of subscriptions spanning 3 tax years. Two of which do not break the 'invalid combination of ISAs' rule.
    • AirlieBird
    • By AirlieBird 15th May 18, 10:51 PM
    • 1,039 Posts
    • 849 Thanks
    AirlieBird
    True, but the AJ Bell LISA was funded by a transfer of subscriptions spanning 3 tax years. Two of which do not break the 'invalid combination of ISAs' rule.
    Originally posted by masonic
    Doesn't matter which year it relates to. The regulations specify that if you make a current year payment or a pre April 2017 HTB ISA transfer to more than one Lifetime ISA only one account is a valid account eligible for the bonus.
    Last edited by AirlieBird; 15-05-2018 at 10:53 PM.
    Did you really mean to put loose?
    Lose: no longer possess, not to retain, unable to find
    Loose: not firmly or tightly fixed in place
    • masonic
    • By masonic 16th May 18, 6:38 AM
    • 9,528 Posts
    • 6,683 Thanks
    masonic
    Doesn't matter which year it relates to. The regulations specify that if you make a current year payment or a pre April 2017 HTB ISA transfer to more than one Lifetime ISA only one account is a valid account eligible for the bonus.
    Originally posted by AirlieBird
    Yes you are right, I had to go back to the original legislation to check this as the HMRC's ISA Guidance Notes have been replaced with a help page that is vague on this point.

    http://www.legislation.gov.uk/uksi/2017/466/made
    "New Regulation 4AA
    9. After regulation 4A insert
    ...
    (4) Where an investor has made current year payments or a payment described in regulation 10A(4)(c) to more than one Lifetime ISA, only one account will be a valid account which is eligible for the payment of a government bonus."

    "New regulation 10A
    21. After regulation 10 insert
    ...
    (4) The following are not current year payments
    ...
    (c)the first or only transfer from a Help to Buy ISA (as described in regulation 5DDC(6)) to a Lifetime ISA in the year 2017-18 in an amount not exceeding the balance on the Help to Buy ISA as at 5th April 2017 plus accrued interest."
    Last edited by masonic; 16-05-2018 at 6:48 AM.
    • AirlieBird
    • By AirlieBird 16th May 18, 6:50 AM
    • 1,039 Posts
    • 849 Thanks
    AirlieBird
    Do you have a link to the source of the information stating this (specifically that then current year subscriptions for 2017/18 AND HTB ISA transfer funds must reside together)? I see HMRC have got rid of the usual ISA Guidance Notes document and replaced it with a more vague help page.
    Originally posted by masonic
    I'm not sure it is in the guidance notes. It is in the legislation.

    http://www.legislation.gov.uk/uksi/2017/466/regulation/9/made
    (4) Where an investor has made current year payments or a payment described in regulation 10A(4)(c) to more than one Lifetime ISA, only one account will be a valid account which is eligible for the payment of a government bonus.

    Where regulation 10A(4)(c) is
    http://www.legislation.gov.uk/uksi/2017/466/regulation/21/made
    (c)the first or only transfer from a Help to Buy ISA (as described in regulation 5DDC(6)) to a Lifetime ISA in the year 2017-18 in an amount not exceeding the balance on the Help to Buy ISA as at 5th April 2017 plus accrued interest.
    Did you really mean to put loose?
    Lose: no longer possess, not to retain, unable to find
    Loose: not firmly or tightly fixed in place
    • masonic
    • By masonic 16th May 18, 7:07 AM
    • 9,528 Posts
    • 6,683 Thanks
    masonic
    I'm not sure it is in the guidance notes. It is in the legislation.
    Originally posted by AirlieBird
    Thanks, that's exactly where I went just after making my post and it looks like I didn't edit it quite quickly enough to save you the trouble of looking it up as well.
    • Rdh181
    • By Rdh181 16th May 18, 7:47 AM
    • 3 Posts
    • 0 Thanks
    Rdh181
    Thanks both - thatís really helpful (and also not the answer I was hoping for, oh well!).
    • madfistbt
    • By madfistbt 16th May 18, 2:39 PM
    • 11 Posts
    • 0 Thanks
    madfistbt
    hello peeps, i used my 20k allaownce this year on funding circle, do i have to wait till the next tax year to get a lisa? xx
    • eskbanker
    • By eskbanker 16th May 18, 3:29 PM
    • 7,547 Posts
    • 8,188 Thanks
    eskbanker
    hello peeps, i used my 20k allaownce this year on funding circle, do i have to wait till the next tax year to get a lisa? xx
    Originally posted by madfistbt
    If you have one or more ISAs funded before this tax year then you could open a LISA now and transfer up to £4K from prior year's contributions, but otherwise, yes, you'd be stuck until April next year, because your current year money can't be split up but is much higher than the annual LISA allowance....
    • Alexland
    • By Alexland 16th May 18, 3:47 PM
    • 2,731 Posts
    • 2,073 Thanks
    Alexland
    The other option would be to withdraw £16k plus any interest from FC (unsure if they would allow or apply penalties) and transfer the £4k (but not a penny more) FC IFISA into a LISA.
    Last edited by Alexland; 16-05-2018 at 3:50 PM.
    • madfistbt
    • By madfistbt 16th May 18, 4:26 PM
    • 11 Posts
    • 0 Thanks
    madfistbt
    oh thank you great replies, so next year i can put 16k in my isa and 4k for a lisa? thanks
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