{"id":79039,"date":"2017-02-17T15:54:00","date_gmt":"2017-02-17T15:54:00","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=5ba28bfbe2e655f29273531ec5898e2e"},"modified":"2017-02-17T15:54:00","modified_gmt":"2017-02-17T15:54:00","slug":"news-story-lifetime-isas-available-from-6-april-2017","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=79039","title":{"rendered":"News story: Lifetime ISAs available from 6 April 2017"},"content":{"rendered":"<div class=\"govspeak\">\n<h2 id=\"opening-a-lifetime-isa\">Opening a Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr><br \/>\n<\/h2>\n<p>You can open a Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr> if you\u2019re aged 18 or over but under 40. You must be either:<\/p>\n<ul>\n<li>resident in the UK<\/li>\n<li>a Crown Servant (for example a diplomat or civil servant)<\/li>\n<li>the spouse or civil partner of a Crown Servant<\/li>\n<\/ul>\n<p>As with other <a href=\"https:\/\/www.gov.uk\/individual-savings-accounts\">ISAs<\/a>, you won\u2019t pay tax on any interest, income or capital gains from cash or investments held within your Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr>.<\/p>\n<h2 id=\"saving-in-a-lifetime-isa\">Saving in a Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr><br \/>\n<\/h2>\n<p>You can save up to \u00a34,000 each year in a Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr>. There\u2019s no maximum monthly savings contribution, and you can continue to save in it until you reach 50. The account can stay open after then but you can\u2019t make any more payments into it.<\/p>\n<p>The \u00a34,000 limit, if used, will form part of your overall annual <abbr title=\"Individual Savings Account\">ISA<\/abbr> limit. From the tax year 2017 to 2018, the overall annual <abbr title=\"Individual Savings Account\">ISA<\/abbr> limit will be \u00a320,000.<\/p>\n<div class=\"call-to-action\">\n<h4 id=\"example\">Example<\/h4>\n<p>You could save:<\/p>\n<ul>\n<li>\u00a311,000 in a cash <abbr title=\"Individual Savings Account\">ISA<\/abbr>\n<\/li>\n<li>\u00a32,000 in a stocks and shares <abbr title=\"Individual Savings Account\">ISA<\/abbr>\n<\/li>\n<li>\u00a33,000 in an innovative finance <abbr title=\"Individual Savings Account\">ISA<\/abbr>\n<\/li>\n<li>\u00a34,000 in a Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr> in one tax year<\/li>\n<\/ul>\n<\/div>\n<p>Your Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr> won\u2019t close when the tax year finishes. You\u2019ll keep your savings on a tax-free basis for as long as you keep the money in your Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr>.<\/p>\n<p>Lifetime ISAs can hold cash, stocks and shares qualifying investments, or a combination of both.<\/p>\n<h2 id=\"government-bonus\">Government bonus<\/h2>\n<p>When you save into your Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr>, you\u2019ll receive a government bonus of 25% of the money you put in, up to a maximum of \u00a31,000 a year.<\/p>\n<h2 id=\"withdrawals\">Withdrawals<\/h2>\n<p>You can withdraw the funds held in your Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr> before you\u2019re 60, but you\u2019ll have to pay a withdrawal charge of 25% of the amount you withdraw.<\/p>\n<p>A withdrawal charge will not apply if you\u2019re:<\/p>\n<ul>\n<li>using it towards a first home<\/li>\n<li>aged 60<\/li>\n<li>terminally ill with less than 12 months to live<\/li>\n<\/ul>\n<p>If you die, your Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr> will end on the date of your death and there won\u2019t be a withdrawal charge for withdrawing funds or assets from your account.<\/p>\n<h2 id=\"transferring-a-lifetime-isa\">Transferring a Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr><br \/>\n<\/h2>\n<p>You can transfer your Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr> to another Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr> with a different provider without incurring a withdrawal charge.<\/p>\n<p>If you transfer it to a different type of <abbr title=\"Individual Savings Account\">ISA<\/abbr>, you\u2019ll have to pay a withdrawal charge.<\/p>\n<h2 id=\"saving-for-your-first-home\">Saving for your first home<\/h2>\n<p>Your Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr> savings and the bonus can be used towards buying your first home, worth up to \u00a3450,000, without incurring a withdrawal charge. You must be buying your home with a mortgage.<\/p>\n<p>You must use a conveyancer or solicitor to act for you in the purchase, and the funds must be paid direct to them by your Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr> provider.<\/p>\n<p>If you\u2019re buying with another first time buyer, and you each have a Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr>, you can both use your government bonus. You can also buy a house with someone who isn\u2019t a first time buyer but they will not be able to use their Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr> without incurring a withdrawal charge.<\/p>\n<p>Your Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr> must have been opened for at least 12 months before you can withdraw funds from it to buy your first home.<\/p>\n<p>If you have a <a href=\"https:\/\/www.gov.uk\/government\/publications\/help-to-buy-isa-factsheet\">Help to Buy <abbr title=\"Individual Savings Account\">ISA<\/abbr><\/a>, you can transfer those savings into your Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr> or you can continue to save into both \u2013 but you\u2019ll only be able to use the government bonus from one to buy your first home.<\/p>\n<p>You can transfer the balance in your Help to Buy <abbr title=\"Individual Savings Account\">ISA<\/abbr> into your Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr> at any time if the amount is not more than \u00a34,000.<\/p>\n<div class=\"call-to-action\">\n<p>In the tax year 2017 to 2018 only, you can transfer the total balance of your Help to Buy <abbr title=\"Individual Savings Account\">ISA<\/abbr>, as it stands on 5 April 2017, into your Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr> without affecting the \u00a34,000 limit.<\/p>\n<\/div>\n<p>A Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr> can be offered by any financial services provider who has permission to do so. They may set conditions of their own when you sign up for an account.<\/p>\n<p>Contact your provider directly for more information about the Lifetime <abbr title=\"Individual Savings Account\">ISA<\/abbr>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Lifetime Individual Savings Account (ISA) is a longer term tax-free account that receives a government bonus. It&#8217;ll be available from 6 April 2017.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/79039"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=79039"}],"version-history":[{"count":1,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/79039\/revisions"}],"predecessor-version":[{"id":79077,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/79039\/revisions\/79077"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=79039"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=79039"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=79039"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}