All you need to know about the Lifetime ISA (Individual Savings Account)

You can use the individual savings account Lifetime ISA to buy your first home or start saving money for later years of life. To open an account, you must be 18 years old or older, but less than 40 years old.

Up to when you are 50 years old, you can transfer to an account up to £4000 a year. The government will add to your savings a bonus of 25%, up to a maximum of £1,000 per year.

Limit Lifetime ISA at £4,000 goes to your annual limit of individual savings account. For the 2017 -2018 tax year this amount is £20 thousand.

On the Lifetime ISA account, you can have money or shares (or both).

When withdrawing funds from the account, a 25% commission is charged. It does not apply if:

you buy your first home;

you are 60 or more years old;

you are terminally ill, and you have less than 12 months to live.

When you turn 50, you cannot make payments to Lifetime ISA or get a 25% bonus. At the same time, your account will remain open, and your deposits will continue to bring you interest.

To open and continue to put money on the Lifetime ISA, you must live in the UK, unless you are a civil servant (for example, in the diplomatic service) or a spouse or civil partner of a person in public service.

Buying the first house

You can spend your savings on the purchase of your first housing if all the following items apply to you:

The property costs £450,000 or less;

you acquire real estate, at least 12 years, after you opened a Lifetime ISA account;

you use the services of a lawyer who is in charge of the transfer of property. In this case, the provider of your individual savings account will pay the money directly to the person;

you are making a purchase on a mortgage.

Buying a house together with someone

If you buy property together with a person who has a Lifetime ISA, he can use both his savings and the bonus.

If you have Lifetime ISA and Help to Buy ISA, when purchasing your first house you can use a government bonus only from one of them.

You can transfer money from the Help to Buy ISA account to the Lifetime ISA. If you transfer money from Lifetime ISA to Help to Buy ISA, you will have to pay a 25% commission.

Savings on pension

When you turn 60 or more, you will be able to use the money saved at the Lifetime ISA. If you withdraw money or transfer it to another ISA account before you turn 60, you will pay a 25% commission.

read other news here

UK Lifetime_ISA Individual_Savings_Account
If you notice an error, highlight the text you want and press Ctrl + Enter to report it to the editor
I recommend
No recommendations yet

Comments

Comments are designed to communicate and discuss the features of an enterprise or event, as well as to find out the interesting questions on it.

Incidents
A man has been charged with the murder of a nurse who appeared on Britain's Got Talent in an NHS choir. Simonne Samantha Kerr, 31, from Wembley, was found fatally injured in a house in Grayshott Road, Battersea, on Wednesday - writes  bbc.com She was treated by paramedics but pronounced dead at the scene. Desmond Sylva, 40, of Grayshott Road, will appear in Wimbledon Magistrates' Court on Friday. Police are not looking for anyone else over Ms Kerr's death....
Society
A maths teacher has been showing off her artistic skills by decorating rocks with incredible miniature versions of book covers. Ella Dickson, 39, spends up to an hour painting covers of books like Harry Potter and the Philosopher’s Stone, Northern Lights and Matilda on rocks. She posts her intricate creations on a local Facebook page before hiding them near her local library for kids to find, photograph and then often re-hide. Mum-of-two Ella is part of th...
Incidents
A doctor who worked as a physician to Britain’s Queen Elizabeth has been killed after colliding with a truck as he cycled through central London. Peter Fisher, 67, was riding through the High Holborn area on Wednesday morning when the collision occurred. Police said he had died at the scene. “We are all deeply shocked and saddened to learn that Dr Peter Fisher tragically died in a road traffic accident yesterday,” Gill Gaskin, medical director at Universit...
Society
Students collecting results from their school in the shadow of Grenfell Tower said they were proud to be bringing a sense of hope back to the community. Safety concerns forced Kensington Aldridge Academy to move to portable classrooms after the fire in June last year. Four of the school’s pupils and one former student were among the 72 killed. Students were given the choice to sit the exams in the original building or in the temporary classrooms. Many retu...
Society
A former refugee who stood outside Canary Wharf station with a sign pleading for work says he is "overwhelmed" after a tweet showing him standing with his sign went viral. 22-year-old Mohamed Elbarkey sayshis self-promotional stunt has earned him some promising job leads, including interviews at places he would "love to work at." Mr Elbarkey came to the UK with his family as a refugee from Libya and graduated with a 2:1 in Aerospace Engineering from Southa...
Society
In a UK first, shoppers in south London can now buy groceries in Sainsbury’s without going to the checkout or self-service scanner. By simply using their smart phone, shoppers can skip the queue altogether and buy products by scanning what they need themselves - writes standard.co.uk The supermarket chain is trialling new scan, pay and go technology in its Clapham North branch. The trial is thought to be the first of its kind not just in London, but the wh...
Crime
Four men have been stabbed and six have been arrested following an incident in Camberwell. Officers were called to playing fields outside Landor House at 5.24pm following reports of a stabbing. According to a Scotland Yard spokesperson, the four men, all believed to be in their teens,"have all been taken to south London hospitals." "Six males have been arrested in connection with the incident." Police remain at the scene. The condition of the four men is n...
Society
A dance festival for 10,000 revellers in a south London park has been refused a licence after complaints from couples that the event would “spoil” their weddings nearby - writes standard.co.uk Diynamic Festival was set to take place in Morden Park on September 8. Tickets were already sold for the event, which boasts a line-up of house and techno DJs including Solomun and Adriatique across two stages. But Merton council rejected a licence application for it...
Society
He made the promise as the government announced £10m to improve security and conditions at certain jails. New body scanners and sniffer dogs are to be introduced in 10 of England's most "challenging" prisons as part of a clampdown on drugs and mobile phones. The dogs have been trained to detect psychoactive substances such as Spice. Ministers also want to raise standards of leadership by sending prison governors to military-style colleges. And there will b...