stevio
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Post by stevio on Mar 6, 2018 11:58:18 GMT
I have left things to last minute!
I used up all but £100 of the current years ISA allowance, leaving the £100 to open a LISA. I changed my mind and would like to use the full £4k allowance
The only way I can do this is to transfer previous years ISAs to the LISA, but I realize this might take some time and might not be transferred till after the current tax year now
Which tax year would the transfer fall in, the tax year I requested the transfer (eg 17/18 if request now) or the tax year the transfer is actually completed in (likely 18/19 now)?
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SteveT
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Post by SteveT on Mar 6, 2018 15:21:37 GMT
Pretty sure you’ll only get the 2017/18 LISA bonus on funds credited to the LISA by April 5th.
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pom
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Post by pom on Mar 6, 2018 15:38:55 GMT
Would you get a bonus on transfers tho? Surely it's more about "new" money? (I don't necessarily have a clue what I'm talking about...  ) |
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SteveT
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Post by SteveT on Mar 6, 2018 16:10:34 GMT
Would you get a bonus on transfers tho? Surely it's more about "new" money? (I don't necessarily have a clue what I'm talking about... ) The bonus on a LISA investment (up to the annual £4K limit) is broadly analagous to tax relief on a pension contribution, a reward for locking in the money until either buying a first home or retiring. As such, I don’t see why money deposited initially into a 2017/18 ISA but then transferred into a LISA instead, before the end of the tax year, wouldn’t attract the bonus. Whether one can fund a LISA via transfers from previous years’ ISAs I’m unsure. But, conceptually, I don’t see why not; you’d still be locking up money that otherwise would be available to spend whenever.
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stevio
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Post by stevio on Mar 12, 2018 13:27:11 GMT
I have looked into this for you. According to HMRC rules, the official transfer date is the point that the receiving ISA manager agrees to
accept the transfer and not the date we receive the cash or assets. If we have gone back to the transferring provider before 5 April 2018
then it will count towards this tax year (17/18).
I think this means might have time?
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