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  • FIRST POST
    • jessemcgoldrick
    • By jessemcgoldrick 9th May 18, 12:15 PM
    • 1Posts
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    jessemcgoldrick
    Calling LISA experts! A conundrum!
    • #1
    • 9th May 18, 12:15 PM
    Calling LISA experts! A conundrum! 9th May 18 at 12:15 PM
    Bit of a head scratcher here for you all...

    I currently hold a Lifetime ISA with Hargreaves & Lansdowne. This was opened last year (FY18) by transferring a Lifetime ISA from Nutmeg Savings & Investments through the correct method of application to H&L who then requested the transfer from Nutmeg.

    Hargreaves & Lansdown have informed me that Nutmeg did not provide them with an accurately completed transfer history form detailing current year (FY18) subscriptions to the LISA. As a result, Hargreaves & Lansdown provided me with inaccurate information regarding my remaining ISA allowance as they were apparently not aware that the 100.82 which had been transferred from Nutmeg was a current year subscription. I then made a payment into my LISA of the full remaining amount as stated by H&L up to the LISA limit of £4000, however this has resulted in an oversubscription of 100.82, with total FY18 subscriptions of £4100.82. In addition to the 100.82 transferred from my Nutmeg LISA, a Help-to-buy ISA was also transferred in from Lloyds with current year (FY18) subscriptions of 1758.56. Therefore, with the amount of 100.82 being relatively small, the error was not quite as obvious as if I had simply made a full £4000 subscription after transferring in my Nutmeg LISA.

    This is not the main issue however as the over-subscription of 100.82 could be repaired. The main issue is that H&L have not applied for the government bonus on previous year contributions.

    Information at gov.uk states that "During the 2017 to 2018 tax year, the government bonus can only be claimed within 14 days after the end of the tax year, for example between 6 and 19 April 2018" which would suggest the deadline has now been missed. However, a HMRC employee wrote the following in reply to an email I sent asking for advice:

    "There is a 6 year limit on claiming a LISA Bonus payment so once this issue is resolved there should be no reason why your LISA Manager shouldn’t be able to claim a backdated bonus payment based on what you have laid out below, I assume that your LISA manager has not requested a bonus claim your 2017/18 payment due to the over subscription situation. I can assure you that you have not missed out, we will get this resolved and ensure that a claim is made for you."

    Great news, but it doesn't seem to match up with the info at gov.uk...

    In the case of an over-subscription in FY18, is it right that H&L should have chosen not to apply for the government bonus on previous year subscriptions within the time limit? Is there existing HMRC-issued guidance which advises them to take this course of action?[/B]

    Including all previous year contributions to my Lloyds Help-to-buy ISA, Nutmeg LISA and H&L LISA up to the end of FY18 and excluding the 100.82 oversubscription in FY18, I am entitled to a government bonus on the amount of 7696.62. H&L have informed me that even if the oversubscription is repaired and 100.82 removed from my LISA, they can now no longer apply for the government bonus, resulting in me losing out on almost £2000 if this is not resolved.

    Is it right that H&L have no obligation to do anything more and that I must now hunt for a solution or wait for HMRC to get in touch with me at some point in the future? What if I want to use the money and bonus to buy a house now?

    Any advice appreciated.
Page 1
    • eskbanker
    • By eskbanker 9th May 18, 12:39 PM
    • 7,846 Posts
    • 8,667 Thanks
    eskbanker
    • #2
    • 9th May 18, 12:39 PM
    • #2
    • 9th May 18, 12:39 PM
    I believe that HL (not H&L btw) are responsible for (and capable of) sorting this out.

    Regardless of their allegation that Nutmeg erred on the paperwork (have you seen any evidence of this?), it's HL's responsibility as the receiving provider in a transfer to resolve issues. At the point the oversubscription became apparent (when was this?) they should have repaired it and claimed the bonus, so the onus shouldn't be on you to liaise with HMRC, it should be up to HL to sort this all out for you, as your contact at HMRC suggested.

    Personally I wouldn't read too much into the gov.uk website quote you've highlighted and certainly wouldn't interpret it as meaning that the situation is irreversible.

    If HL aren't playing ball then complain formally to them and keep escalating (to FOS if necessary) until it's resolved.

    Incidentally, during 2017/18 a Nutmeg LISA could only have held current year contributions - the account was only started in 2017/18 and hasn't offered inbound transfers....
    • AirlieBird
    • By AirlieBird 9th May 18, 1:14 PM
    • 1,039 Posts
    • 849 Thanks
    AirlieBird
    • #3
    • 9th May 18, 1:14 PM
    • #3
    • 9th May 18, 1:14 PM
    The paragraph you quote is intended to mean monthly claims cannot be made during 2017/18 as is the case from 2018/19. Managers have 14 days to submit a claim, but if it is not made within that time period it will be paid with the following months claims.

    To back up HMRC's response you missed the paragraph on gov.uk that states
    If, within a period of 6 years of the end of the claim period, an!ISA!manager becomes aware of an error(s) in the bonus claim(s) made on behalf of investors (including omissions and inclusions) he must include the correction in the next government bonus claim due or otherwise without delay. All payments, adjustments or repayments must be included in the claim correction.
    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
    • Alexland
    • By Alexland 9th May 18, 4:40 PM
    • 2,972 Posts
    • 2,318 Thanks
    Alexland
    • #4
    • 9th May 18, 4:40 PM
    • #4
    • 9th May 18, 4:40 PM
    I agree with the above your current LISA manager needs to resolve this situation. If they are unwilling to claim your bonus then I suggest you ask to raise a complaint and ask for a formal written response.
    • Plus
    • By Plus 9th May 18, 10:40 PM
    • 358 Posts
    • 280 Thanks
    Plus
    • #5
    • 9th May 18, 10:40 PM
    • #5
    • 9th May 18, 10:40 PM
    I have an issue with some transfers into YouInvest where they have claimed the bonus for my HTBISA transfer but not my ex-Nutmeg LISA money, to do with the ordering they received the transfers (they weren't taking LISA transfers at the point of the HTBISA transfer). YouInvest say it should be fixed by the end of the month - ie they missed the April return but it'll be in the May return. I'll wait and see.
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