Lifetime isa question.

Moses said:
When did you open your help to buy isa?

Anything you’ve put into the help to buy isa this year would count towards the limit. Anything from before 17/18 wouldn’t. So eg. I recently transferred £3800 to my LISA but can add another £4k. I’ve left my 17/18 contributions in the isa because I get a good interest rate. I’m talking about transferring in, of course - don’t withdraw the cash from the isa and pay it into the Lisa... use the transfer option on the skipton website.
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July 2016. So from July 16 to April 17 it would be 3k I can transfer without penalty? then I can add a further 4k?

Then leave the rest of my HTB in there.
 
Moses said:
Yes. Well, be careful about the April ‘17 instalment... was it early enough in the month to be 16/17? And if you opened the LISA with £1 then obviously you can only add a further £3999.
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Payment goes out 15th of the month, so I can exclude April and I haven't opened the LISA yet but cool that makes sense.


Ignore the answer to question 5. I changed that before posting. It should have been ‘yes’ and the amount. So you can see I asked them to do a partial transfer of £3800 but not including money paid in this (tax) year.
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Just regarding this, so I would answer 'Yes' and the amount is just the amount paid in the ISA since April 2017 to April 2018 ?

Then the transfer amount is just July 2016-March 2017 collectively?
 
I think I had 4290 in my help to buy on 5th April 2017.
So I could get 8290 in there before the new tax year then stick another 4k in in May. So that would give 12290?

I think that makes sense
 
Moses said:
It’s the amount paid in this tax year.

And yes, that’s the transfer amount. Skipton’s telephone support was good for me, so ring them and confirm anything you’re not sure about. Didn’t have to wait long and they were helpful etc.



It’s just,

16/17 = anything in your help to buy isa before the end of that tax year which you’re just moving over (not certain on interest).
17/18 = £4k
18/19 = £4k

So basically yes.
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How do they work out you haven't put too much in?
 
Moses said:
What do you mean? On the form you effectively tell them ‘hi I have an isa please transfer last year’s subscriptions. Leave this year’s subscriptions where they are’. So they know that for 17/18 you have your full allowance left.

Or if you transfer everything you say, ‘hi, I’m transferring everything from x ISA, but £y was paid in this year’. So they know that for 17/18 you have £4k-£y of allowance left.
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how do they know that you havent put too much in from a transfer?
Do they get information from your other provider that you had xxxx in at 5th of april 2017?
 
If I can afford it. Would another option be, transfer 4k savings into LISA now. Then transfer another 4k in April. Then just keep my HTB as it is?
 
Yes, but you can't use both to purchase a house.

I'm not sure what the rules are if you have a partner though. e.g. could one of you use a LISA and the other person use a HTB ISA to purchase the house if you both hadn't owned a property before?
 
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Moses said:
It’s an option, but why do that?! Assuming you’re planning on buying a house with this money.

You can only add 17/18 contributions now. Transferring is about moving over 16/17 contributions.
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What is the disadvantage of doing it that way? Yes, I plan on purchasing a house.

I at the moment have 8k sat in a current account doing nothing, so transfer 4k now = 17-18 contribution. Then do another 4k in the next tax year?

As it stands, i would be transferring £2600 (16-17 HTB contribution) and then topping up with money from current account anyway to get the 4k this tax year. Leaving £2200 in HTB (17-18 contributions)
 
Moses said:
No. You transfer 2600 (16/17), then add 4000 (17/18), then add 4000 (18/19). Three different tax years.
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Sorry, I see now. I am getting far too mixed up with this. Apologies. Will get the transfer form sent off now for the 2600…do I need to wait for that to clear before I can do the 4k transfer?

Thanks
 
I've decided to max it out.

In the end will be 12k in the Lisa by end of April 2018. (4k transfer, 4k 17/18, 4k 18/19)
And 2600 (ish) left in the help to buy
I'll leave everything after April 17 in the help to buy.
I'll declare to hmrc I want the bonus on the Lisa and keep paying into the help to buy as it's 3.5pc
 
Just making sure I'm not going to miss out (as I already have done leaving it too late) I opened h2b in April 2016 been paying in to that since, only just started with a lifetime ISA in Jan/feb 2018 stupidly but there is no point in me transferring if im looking to buy this year. Even if I transfer the amount I have from my h2b ISA in to the lifetime ISA I would hit a limit
 
DJMK4 said:
Just making sure I'm not going to miss out (as I already have done leaving it too late) I opened h2b in April 2016 been paying in to that since, only just started with a lifetime ISA in Jan/feb 2018 stupidly but there is no point in me transferring if im looking to buy this year. Even if I transfer the amount I have from my h2b ISA in to the lifetime ISA I would hit a limit
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If you aren't buying within the year transfer to a Lisa. Thats providing you can save more than 200ppm.

Why. Because the transfer of pre April 5th 2017 contributions does not contribute to your 17/18 allowance.
 
413x said:
If you aren't buying within the year transfer to a Lisa. Thats providing you can save more than 200ppm.

Why. Because the transfer of pre April 5th 2017 contributions does not contribute to your 17/18 allowance.
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Yep i am looking to buy this year at some point, which is why I should have maybe opened last April.

Last few months have been difficult saving due to some outgoings but on average I save around £800 in bonds per month maybe abit more . £200 in to h2b.
 
I am looking to open a cash Lifetime ISA but just wondering about one thing. Say I invested £1 into it now, then £3,999 say in 11 months from now, would I still get the £1000 bonus at the end of the year? Could I do this each year so I can keep the £3,999 in some other savings account for 11 months?
 
It works on financial years, so you have to get the 4k in before early april.
Whatever there is in by the april date gets the bonus.
Same next year and each year going forward.
 
I see, so if I opened the account now, as long as the £4000 gets in by April I should get the full bonus beyond that as the bonuses are paid monthly in the 18/19 tax year. Not sure what bonus I would get between now and the end of this financial year if I opened one now..

Edit: If I paid in £4000 now inside the 17/18 tax year, would I get a £1000 bonus around May sometime?
Then I just need to put another £4000 in sometime in April to get the max monthly bonus for the 18/19 tax year.
 
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I have another question.
I have an LISA open now with 8k in.
I put another 4k in on April 10 2018(new tax year)
And another 4k on April 10 2019 (new tax year)

Can I then claim the bonus on the full 16k as the Lisa has been open a year but the last 4k has only been in a day?
 
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