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Stocks & Shares LISA
db09striker
Posted: 19 March 2017 14:41:51(UTC)
#1

Joined: 04/03/2017(UTC)
Posts: 11

Thanks: 2 times
The stocks and shares LISA (Lifetime ISA) is coming this April.

I am wondering if anyone can help me.....

Does anyone know....

1. If this bonus physically appears within your account. ie. After year 1 will the £4000 literally be topped up to £5000.

2. I will assume that the £1000 bonus does not count towards your annual ISA limit. Is this assumption correct?

3. Can I physically use that £1000 bonus to invest within the Stocks and Shares ISA? I'd assume not as it's supposed to be for a property and not to potentially be lost in stocks?

Thanks.
Grumpy OAP
Posted: 20 March 2017 13:21:18(UTC)
#2

Joined: 24/01/2014(UTC)
Posts: 13

Was thanked: 3 time(s) in 3 post(s)
db09striker;44791 wrote:
The stocks and shares LISA (Lifetime ISA) is coming this April.

I am wondering if anyone can help me.....

Does anyone know....

1. If this bonus physically appears within your account. ie. After year 1 will the £4000 literally be topped up to £5000.

2. I will assume that the £1000 bonus does not count towards your annual ISA limit. Is this assumption correct?

3. Can I physically use that £1000 bonus to invest within the Stocks and Shares ISA? I'd assume not as it's supposed to be for a property and not to potentially be lost in stocks?

Thanks.


1 - yes.
For the first year the bonus payment is annual. Thereafter it is paid monthly

2 - correct - it does not count.
WEF 6/4/17, you have an annual ISA allowance of £20,000, of which a maximum of £4000 can be subscribed to a LISA

3 - yes, you can invest into a stocks & shares ISA.
As far as I know, only 2 brokers will be offering these from 6 April 2017
Ron Dawes
Posted: 26 March 2017 09:23:15(UTC)
#3

Joined: 30/01/2017(UTC)
Posts: 14

Thanks: 30 times
Was thanked: 15 time(s) in 6 post(s)
Grumpy OAP has answered your first two questions correctly. In respect of your third question., not quite sure what you mean.
The bonus does not have to be invested but there is little point in keeping it in cash especially if the balance of your allowance is in an ordinary cash ISA. You may be able to transfer the bonus to a cash ISA but then you couldn't use that (under the rules) to buy your first property.. Neither will cash in your Lifetime stocks and shares ISA earn any interest.
If you don't have the confidence in shares to invest the bonus, you may be better off in a cash Lifetime ISA in the first place.
If you withdraw it before aged 60 or don't use it to buy a home you will face a 25% charge on all the money you withdraw.
Hope that helps.

https://www.gov.uk/gover...lable-from-6-april-2017
Tom Mozy
Posted: 26 March 2017 20:20:04(UTC)
#4

Joined: 09/07/2013(UTC)
Posts: 68

Thanks: 2 times
Was thanked: 84 time(s) in 34 post(s)
3) Yes that £1k will be credited annually for the first year then monthly. It can be used to invest. Just like the tax rebate on a SIPP. You get to use the bonus from the government to grow your total deposit. From year 2 the bonus will be paid monthly.

Planning to transfer a h2b isa into a lisa in april. Get the bonus from the h2b isa and then the lisa after one year. :)

happy days - well unless house priced rise 25% of course ;)
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