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

Post your comment to communicate and discuss this article.

Society
A village famous for its new year tradition of men prancing around with flaming barrels of tar on their heads has added another unusual string to its bow, by becoming home to a museum of science fiction props - which has opened in the cellar of the curator's house. Adventures in Science Fiction is the latest historical depository to join the 2,500 museums already in the UK. And with so many to choose from, there must be a museum to please pretty much every...
Society
An “influential" black firefighter from London who experienced racial abuse at work today calls for others  to “step up and champion equality” as he retires after nearly 30 years.  Michael Nicholas MBE, who this week retired from London Fire Brigade, campaigned for equal rights in the workforce after experiencing “widespread” racism during his career. Hailing Mr Nicholas as the “UK’s most influential black firefighter” in a statement following his retireme...
Society
Would you trust a taxi with no driver? Taxi firm Addison Lee is betting its customers will be ready to, in London at least, in just three years' time. It has joined forces with self-driving software specialist Oxbotica, and says the tie-up means it will offer self-driving taxis in the capital by 2021. The move will pit it against rival ride-hailing app Uber, which is also planning to roll out driverless cars on its network in the future, pending regulatory...
Crime
A senior US military commander has called on the UK to take back Islamic State fighters who have been "caught on the battlefield" in Syria. Maj Gen Patrick Roberson, commander of US special ops, also called on the government to repatriate two Londoners who have been called the "IS Beatles". The UK says El Shafee Elsheikh and Alexanda Kotey have been stripped of their British citizenship. The government is negotiating for them to face trial in the US. Speak...
Society
A woman has died in a suspected gas explosion in north-west London. Her body was found in a first-floor flat destroyed in the blast in Fulbeck Way, Harrow, just before 01:00 BST Sunday. Another woman, a man and a baby were rescued from a second-floor flat, with the woman and child taken to hospital. About 70 firefighters tackled the flames and 40 neighbours were evacuated from their homes. The Met is investigating. The victim, believed to be in her 80s, ha...
Society
About 13 million adults in the UK live in areas where at least half of the local banks and building societies have closed, analysis by the BBC reveals. Figures from the Office for National Statistics (ONS) show nearly 6,000 local branches have shut since 2010, a fall of a third. The consumer group Which? called the number of closures "alarming". Trade association UK Finance said closing a branch was a last resort when usage falls. Banks and building societ...
Society
A ban on sales of new petrol and diesel cars should be brought forward by eight years to 2032, MPs have said. The government's current plans to ensure all new cars are "effectively zero emission" by 2040 were "vague and unambitious", a report by Parliament's business select committee said. It also criticised cuts to subsidies and the lack of charging points. The government said it aimed to make the UK "the best place in the world" to own an electric vehicl...
Society
London area home sales fell 15.9 per cent in September from August because of a shortage of homes to sell, and that shortage of inventory helped push up prices by 20 per cent from a year ago, the head of the London St. Thomas Association of Realtors (LSTAR) said. In September, LSTAR reported 776 homes changed hands in London and St. Thomas, compared to a near-record August, when 923 homes were sold. By the numbers Homes sold in September: 776 (a drop of 6....
Society
Radical preacher Anjem Choudary, jailed for inviting support for the Islamic State group, has been released. The cleric was sentenced in 2016 to five-and-a-half years in prison. He led an extremist network linked to violent jihadists, including one of the killers of soldier Lee Rigby in 2013. Choudary, 51, has now served half of his sentence and will complete the rest under strict supervision. Police are preparing up to 25 measures to control him, the BBC...